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Question: Suppose that a firm's production function is given by q = 20E0.50.The marginal product of labor is 10/E0.50. The market wage for whites is $15, and the market wage for blacks is $10. The firm sells its product at $6 per unit.

a. How many workers would the firm hire if it does not discriminate?

b. How many workers would the firm hire if it discriminates against blacks with a discrimination coefficient of d = 0.20?

c. How many workers would the firm hire if it discriminates against blacks with a discrimination coefficient of d = 0.60?

Engineering Mathematics, Engineering

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