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Suppose there are two types of workers, high-ability workers and low-ability workers. Workers' wages are determined by their ability- high ability workers earn 50,000 per year, lowability workers earn 30,000 . Firms cannot measure workers' abilities but they can observe whether a worker has a high school diploma. Workers' utility depends on the difference between their wages and the costs they incur in obtaining a diploma. a. If the cost of obtaining a high school diploma is the same for high-
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