QUESTION 1 - Scenario: Assume the marginal revenue product, MRP, for minority workers is given by...

QUESTION 1 - Scenario: Assume the marginal revenue product, MRP, for minority workers is given by MRP = 40 − 5Nm , where Nm is the number of minority workers. The market wage for minorities is $5/hr. Discriminating firms devalue the contributions of minorities at a rate of$5/hr (i.e., d=5).

How many minority workers do non-discriminating firms hire? Supply integer value in your answer.

QUESTION 2 - Stay with scenario in Q1. What is the profit level of non-discriminating firm at their chosen quantity demanded of minority workers? Supply the answer rounded to the nearest tenth decimal point (e.g. 20.5).

QUESTION 3 - Stay with scenario in Q1. How many minority workers do discriminating firms hire? Supply an integer answer.

QUESTION 4 - Stay with scenario in Q1. What is the profit level of discriminating firm at their chosen quantity demanded of minority workers? Supply an integer value.

Expert Solution

Pages attached below from 1 to 3 arranged in order show solution for above questions-

Rahul Sunny answered 1 year ago

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