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Suppose there are two types of workers: high ability and low ability. A particular educational degree costs a high-ability person $15,000 and costs a low-ability person $40,000. Employers wish to use education as a screening device where they intend to pay $60,000 to workers without a diploma and $M to those with a diploma. In what range must Mbe to make this an effective screening device? Explain in a few sentences why you have recommended the specific earning range (lower bound and higher bound) for workers with the diploma in this case. (10 marks) Now for Part (b) suppose that the labour markets in this economy are actually highly competitive, such that the earnings for both groups of workers with and without the diploma are set by the combination of demand and supply and market forces. Therefore, as such the employers do not have the ability to set the earnings range for workers. Explain how else employers can use education to act as an effective signal for ability of workers for hiring? Explain why you expect the solution you have offered to be viable as a signal? Explain briefly.