An employer whose discrimination coefficient is $5 will Group of answer choices refuse to hire nonpreferred-race...

An employer whose discrimination coefficient is $5 will

Group of answer choices

refuse to hire nonpreferred-race workers at any wage rate.

hire only nonpreferred-race workers if the actual nonpreferred-preferred wage differential is $3 an hour.

hire only preferred-race workers if the actual nonpreferred-preferred wage differential is $6 an hour.

hire only preferred-race workers if the nonpreferred-preferred wage differential is $4.

Expert Solution

Option 2

A discriminating employer would hire nonpreferred if the wage of nonpreferred is less than preferred

WP = WNP+d

For example,

100 = 97+3

So, as the wage of nonpreffered is less than preferred

Rahul Sunny answered 2 years ago

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