Jason is a member of Group J, who are less productive than Mario's group (Group...
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Accounting
Jason is a member of Group J, who are less productive than Mario's group (Group M). The average productivity of Group J is 15, while the average productivity of Group M is 30. Jason and Mario take a test which is accurate 25% of the time and each receives an identical score of 25 points.
a. If the firm is a profit maximizer, what wage offer will Jason receive?
b. If the firm is a profit maximizer, what wage offer will Mario receive?
c. Would the firm offer Jason a wage of $25 if this test was accurate 75% of the time? Why or why not?
d. Explain why J workers have less incentive to obtain costly training than M workers
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