Suppose that the wage-schooling schedule is w(s) = 2 k 0 p s and that the rate o

Question

Suppose  that  the  wage-schooling  schedule  is
w(s)  =  2 k 0 p s
and  that  the  rate  of  interest  rate  is
r
It can be shown that the marginal return to schooling investments is

MW(s) = k 0 = p s
What condition governs the optimal choice of education, s*?

If  
r= 5%  and if k 0 = 5.25, what is the optimal schooling level? Suppose  that  the  wage-schooling  schedule  is
w(s)  =  2 k 0 p s
and  that  the  rate  of  interest  rate  is
r
It can be shown that the marginal return to schooling investments is

MW(s) = k 0 = p s
What condition governs the optimal choice of education, s*?

If  
r= 5%  and if k 0 = 5.25, what is the optimal schooling level?

Explanation / Answer

approxmately 500

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.