To analyze the effects of discrimination in labor markets


To analyze the effects of discrimination in labor markets, use supply and demand curves for labor, with the demand curves representing the value of the marginal product.

In the following case, show the effects of discrimination on wage rates, and show whether there are forces in the market that would tend to make the discriminators treat people fairly:

a) Acme and United are two identical firms. Acme refuses to hire blacks, while United treats all job applicants equally.

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Business Economics: To analyze the effects of discrimination in labor markets
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