Consider the below diagram which shows the marginal revenue product of workers in a firm, which falls with the number of workers hired (see also Lecture 7 slides). Assume that women and men have equal productivity and that the firm's MRP curve is the same for both labour inputs. Wage (W), Marginal Revenue Product A (MRP) W₁+d Wb 0 C B E G No N₁ Actual MRP Number of Women or Minorities Hired This firm/employer is prejudiced against women and operates in a competitive labour market. If the wage for women is wb and this employer hires women, which of the following statements are FALSE? [Tick all that apply; carefully select your answers & double check!] The employer behaves as if labour supplied by women incurs an extra cost on top of the wage cost. This employer hires N₁ women. This prejudiced firm's profits are equal to ABC. This employer gains lower profits due to being prejudiced. As this prejudiced employer hires women, there must be a (gender) wage differential in the labour market: wa-wb>0 (with wa the wage paid to men and wb the wage paid to women). The extent of prejudice of this employer is reflected in the magnitude of d (with d>0). W₁ is determined in the labour market; the employer takes this wage as given. Employers hire the cheapest form of labour. They base this decision on the utility-adjusted wage cost for each group. This employer is likely to hire women only; it is likely to be a segregated workplace.
Consider the below diagram which shows the marginal revenue product of workers in a firm, which falls with the number of workers hired (see also Lecture 7 slides). Assume that women and men have equal productivity and that the firm's MRP curve is the same for both labour inputs. Wage (W), Marginal Revenue Product A (MRP) W₁+d Wb 0 C B E G No N₁ Actual MRP Number of Women or Minorities Hired This firm/employer is prejudiced against women and operates in a competitive labour market. If the wage for women is wb and this employer hires women, which of the following statements are FALSE? [Tick all that apply; carefully select your answers & double check!] The employer behaves as if labour supplied by women incurs an extra cost on top of the wage cost. This employer hires N₁ women. This prejudiced firm's profits are equal to ABC. This employer gains lower profits due to being prejudiced. As this prejudiced employer hires women, there must be a (gender) wage differential in the labour market: wa-wb>0 (with wa the wage paid to men and wb the wage paid to women). The extent of prejudice of this employer is reflected in the magnitude of d (with d>0). W₁ is determined in the labour market; the employer takes this wage as given. Employers hire the cheapest form of labour. They base this decision on the utility-adjusted wage cost for each group. This employer is likely to hire women only; it is likely to be a segregated workplace.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explain all options...pla
![Consider the below diagram which shows the marginal revenue product of workers in a firm, which falls with the
number of workers hired (see also Lecture 7 slides). Assume that women and men have equal productivity and that
the firm's MRP curve is the same for both labour inputs.
Wage (W),
Marginal
Revenue
Product A
(MRP)
W₁+d
Wb
0
C
B
E
G
No
N₁
Actual MRP
Number of Women or Minorities Hired
This firm/employer is prejudiced against women and operates in a competitive labour market. If the wage for women
is wb and this employer hires women, which of the following statements are FALSE? [Tick all that apply; carefully select
your answers & double check!]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F385d7a1c-7e26-4fbf-8ed4-28288c80e8b5%2F948270e0-9eaf-4ab2-b4da-ed8d8f8aaba6%2Ff029r1q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the below diagram which shows the marginal revenue product of workers in a firm, which falls with the
number of workers hired (see also Lecture 7 slides). Assume that women and men have equal productivity and that
the firm's MRP curve is the same for both labour inputs.
Wage (W),
Marginal
Revenue
Product A
(MRP)
W₁+d
Wb
0
C
B
E
G
No
N₁
Actual MRP
Number of Women or Minorities Hired
This firm/employer is prejudiced against women and operates in a competitive labour market. If the wage for women
is wb and this employer hires women, which of the following statements are FALSE? [Tick all that apply; carefully select
your answers & double check!]
Transcribed Image Text:The employer behaves as if labour supplied by women incurs an extra cost on top of the wage cost.
This employer hires N₁ women.
This prejudiced firm's profits are equal to ABC.
This employer gains lower profits due to being prejudiced.
As this prejudiced employer hires women, there must be a (gender) wage differential in the labour market: wa-wb>0 (with wa the
wage paid to men and wb the wage paid to women).
The extent of prejudice of this employer is reflected in the magnitude of d (with d>0).
W₁ is determined in the labour market; the employer takes this wage as given.
Employers hire the cheapest form of labour. They base this decision on the utility-adjusted wage cost for each group.
This employer is likely to hire women only; it is likely to be a segregated workplace.
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