Question: Suppose that high-productivity workers have a marginal product of £5,000, low-productivity ones of £2,000. What will the firm pay in the pooling equilibrium? We suppose that workers can either become educated or not educated. Education costs £2,500 for high-productivity workers and £3,500 for low-productivity ones. Is there a pooling equilibrium? Will there be a pooling equilibrium if the costs of education are reversed (i.e. they are £2,500 for low-productivity and £3,500 for high-productivity workers)?