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There is an island of 4 Nicks and 1 Emma, a college, and an accounting firm. College education is free of cost, and adds no value to productivity. Emma is sensitive to numbers. She is indifferent between going to college or not Emma can count 10 beans/hr (regardless of edu). Nick is arithmetically challenged. He feels dizzy when he sees numbers. College incurs a pain of 2 on Nick. Nick can count 0 bean/hr (regardless of edu). Suppose boss of the firm has no information about each worker’s productivity. Then in equilibrium
A Neither goes to college
B Only Emma goes to college
C Both go to college
D Both go to college or only Emma goes to college
Explain your answer briefly.
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