If jane gets one year of college she will earn 20 per hour, Business Economics

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If jane gets one year of college she will earn 20 per hour

If Jane gets one year of college she will earn $20 per hour. If Jane gets two years of college she will earn $22 per hour. If Jane gets three years of college, she will earn $24 per hour. If Jane finishes college, she will earn $25 per hour. Jane’s discount rate is 6 percent per period.

a. Derive Jane’s marginal rate of return schedule.

b. How many years of schooling will Jane get? Why?

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Business Economics: If jane gets one year of college she will earn 20 per hour

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Business Economics: If jane gets one year of college she will earn 20 per hour

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