Problem
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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.