37.1. Suppose that low-productivity workers all have marginal products of 10 and high-productivity workers have marginal products of 12. The community has equal numbers of each type of worker. The local community college offers a course in microeconomics. High-productivity workers think taking this course is as bad as a cut in wages of $4 and low-productivity workers think it is as bad as a wage cut of $8.

a. There is a separating equilibrium in which high-productivity workers take the course and are paid $12 and low-productivity workers do not take the course and are paid $10.

b. There is no separating equilibrium and no pooling equilibrium.

c. There is no separating equilibrium, but there is a pooling equilibrium in which everybody is paid $11.

d. There is a separating equilibrium in which high-productivity workers take the course and are paid $16 and low-productivity workers do not take the course and are paid $10.

e. There is a separating equilibrium in which high-productivity workers take the course and are paid $12 and low-productivity workers are paid $11.

37.6.Suppose that in Enigma, Ohio, Klutzes have a productivity of $1,000 and Kandos have a productivity of $3,000 per month. You can’t tell Klutzes from Kandos by looking at them or asking them, and it is too expensive to monitor individual productivity. Kandos, however, have more patience than Klutzes. Listening to an hour of dull lectures is as bad losing $150 for a Klutz and $100 for a Kando. There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $3,000 per month and anybody who does not is paid $1,000 per month

a. if 13.33 < H < 20.

b. if 13.33 < H < 40.

c. for all positive values of H.

d. only in the limit as H approaches infinity.

e. if 10 < H < 15.