Suppose some workers are just capable and some others are extraordinary. Firmsare willing to pay the capable workers a salary of $14,000 and the extraordinary workersa salary of $20,000. The workers...

Suppose some workers are just capable and some others are extraordinary. Firms are willing to pay the capable workers a salary of $14,000 and the extraordinary workers a salary of $20,000. The workers know whether they are capable or extraordinary, but the firms do not. It would cost a capable person $8,000 to earn a college degree, but it would cost an extraordinary person just $4,000 to earn the degree since they can finish their education much faster. Show that, in equilibrium, in this labor market