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Consider Ann and Bob attending the business school. Firms considering hiring business students know Show more Consider Ann and Bob attending the business school

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Consider Ann and Bob attending the business school. Firms considering hiring business students know Show more Consider Ann and Bob attending the business school. Firms considering hiring business students know that while many students can obtain a given grade point average (GPA) better workers have a lower cost to obtaining a given GPA. As such they may offer differing wages based on a students GPA at graduation. This is given by the benefit curve B. Now Ann is a better student than Bob in that she can obtain the same GPA at a lower cost (less time studying). Her cost of obtaining a given GPA is given by C (Ann). Bobs cost of obtaining a GPA is given by C (Bob). Use the double drop line to identify the GPA each will chose to obtain and their corresponding wage upon graduation. Label them GPA (Ann) and GPA (Bob) respectively. Show less

 
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