3. Consider Figure 9-6 which shows the present value of lifetime earnings (PVE) firms are willing to offer to workers who have attained different levels of education. Those workers who have completed 16 years or more of education (4 or more years after high school) will be offered a wage leading to a present value of lifetime income of $2,000,000 (PVE2), while those completing less than 16 years of education will be offered a wage leading to a present value of lifetime income equal to $1,000,000 (PVEI). Lines CA and CB show the total cost of different levels of education for two types of workers. Type A workers are low-productivity workers while type B workers are high-productivity workers. 24 CA PVE d PV ($100,000) 18 16 14 12 10 N&NONO PVE 6 4- 2 a 12 13 14 18 19 20 15 16 17 Education (years) Figure 9.6 a. What is the net benefit (i.c., the difference between the PVE and the cost of education) a type A person would derive from attaining 16 years of education? What would be the net benefit for A from 12 years of education? What is the optimal level of education for a type A person? b. What is the net benefit a type B person would derive from attaining 16 years of education? What would be the net benefit for B from 12 years of education? What is the optimal level of education for a type B person? c. Is 16 years of education an effective way to distinguish low-productivity workers from high productivity workers