Hello everyone! I need your help in understanding the graphs of Mccall’s model (attachment link). I used the code indicated in the link and have no problems. My problem is that I can not understand the units of measurement used for wages. Since I should adapt this model to a real case, is it right to use a w_min = 800 (euro) w_max = 5000 (euro) and c = 600 (euro)? What units of measurement were used for w_min=10 and W_max=60?
I would also have another question about the second graph shown: on the ascissa we read the wages, while on the ordinate the value of the function that does not correspond to the salary to be accepted, as I read it on the x-axis, when w is greater than w_bar (booking wage). Right?