Suppose the decision to acquire schooling depends on three factors—preferences (joy of learning), costs (monetary and psychic), and individual-specific returns to education. a. Explain how each of these factors affects one’s optimal amount of schooling. b. Using these three factors, explain why someone who faces a very steep wageschooling locus may still opt to obtain very little schooling. c. Consider two groups of people—Alphas and Betas. The cost of schooling is the same for each. The average level of schooling and salary for Alpha types is 15 years and $120,000, while the average level of schooling and salary for Beta types is 13 years and $100,000. Why is it that 10 percent, which is calculated as ($120,000 – $100,000)/(15 – 13), is not a good estimate of the annual return to an additional year of education?