6. The market wage rates for male and female workers are $25 and $10 per worker, respectively. Output is given by Q = JE, so that the marginal product of labor is 1 where E is the total 2E number of workers (it doesn't matter if they're male or female). The price of output is 100. a. What are the profit-maximizing levels of employment of male and female workers (how many of each would a nondiscriminatory employer hire)? b. If an employer discriminates against females with a discrimination coefficient of 0.25, how many male and female workers does the employer hire? c. If an employer discriminates against females with a discrimination coefficient of 3.0, how many male and female workers does the employer hire? d. If the only costs to the employer are its labor costs, what are the profits to a non- discriminatory employer? What are the profits of the employer who has a discrimination coefficient of 0.25? What are the profits of the employer who has a discrimination coefficient of 3.0?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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6a

6b

6. The market wage rates for male and female workers are $25 and $10 per worker, respectively.
Output is given by Q = JE, so that the marginal product of labor is
1
where E is the total
2E
number of workers (it doesn't matter if they're male or female). The price of output is 100.
a. What are the profit-maximizing levels of employment of male and female workers (how
many of each would a nondiscriminatory employer hire)?
b. If an employer discriminates against females with a discrimination coefficient of 0.25,
how many male and female workers does the employer hire?
c. If an employer discriminates against females with a discrimination coefficient of 3.0, how
many male and female workers does the employer hire?
d. If the only costs to the employer are its labor costs, what are the profits to a non-
discriminatory employer? What are the profits of the employer who has a discrimination
coefficient of 0.25? What are the profits of the employer who has a discrimination
coefficient of 3.0?
Transcribed Image Text:6. The market wage rates for male and female workers are $25 and $10 per worker, respectively. Output is given by Q = JE, so that the marginal product of labor is 1 where E is the total 2E number of workers (it doesn't matter if they're male or female). The price of output is 100. a. What are the profit-maximizing levels of employment of male and female workers (how many of each would a nondiscriminatory employer hire)? b. If an employer discriminates against females with a discrimination coefficient of 0.25, how many male and female workers does the employer hire? c. If an employer discriminates against females with a discrimination coefficient of 3.0, how many male and female workers does the employer hire? d. If the only costs to the employer are its labor costs, what are the profits to a non- discriminatory employer? What are the profits of the employer who has a discrimination coefficient of 0.25? What are the profits of the employer who has a discrimination coefficient of 3.0?
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