For questions 11-14: Suppose a firm's production function is given-by q = 8 Ew + Ep,“ where Ex and Es are the number of whites and blacks employed by the firm respectively. It can be shown that- the marginal product of labor-is then MPg Ew+Eb Suppose the market wage for black workers is $16, the market wage for whites is $20, and the price ofeach unit- of output is $100.+ 11. According to the production function, the relationship between black workers and white workers is A. Perfect substitutese B. Complementarye C. Unknowne D. None of above

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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For questions 11-14: Suppose a firm's production function is given bye
q = 8JEW + Ep,"
where Ex and E; are the number of whites and blacks employed by the firm respectively. It can be shown that-
the marginal product of-labor is then
4.
MPĘ =
Ew+Eb
Suppose the market wage for black workers is $16, the market wage for whites is $20, and the price of each unit-
of output is $100.
11. According to the production funetion, the relationship-between black workers and white workers is -
A. Perfect substitutese B. Complementarye
C. Unknowne
D. None of above
12. If the firm does not discriminate, it hires only:
worker, and the output quantity is
The profit is
A. White; 400; $5,000e
B. White; 200; $10,000-
C. Black; 400; $5,000-
D. Black; 200; $10,000e
13. If a firm is discriminatory, the discriminate coefficient is
worker and black worker. And the number of workers hired is
A. 1; lesse
when the firm is indifferent between hiring white
than the number hired if it's not discriminatory. -
B. 1; more
C. 0.25; lesse
D. 0.25;more
14. If the firm is discriminatory with discrimination coefficient 2.5, it hires only-
employment is
A.White;400; $8,000
worker, and the number of
The profit is
B. White; 500; $10,000
C. Black; 400;$8,000
D. Black; 500; $10,000
Transcribed Image Text:For questions 11-14: Suppose a firm's production function is given bye q = 8JEW + Ep," where Ex and E; are the number of whites and blacks employed by the firm respectively. It can be shown that- the marginal product of-labor is then 4. MPĘ = Ew+Eb Suppose the market wage for black workers is $16, the market wage for whites is $20, and the price of each unit- of output is $100. 11. According to the production funetion, the relationship-between black workers and white workers is - A. Perfect substitutese B. Complementarye C. Unknowne D. None of above 12. If the firm does not discriminate, it hires only: worker, and the output quantity is The profit is A. White; 400; $5,000e B. White; 200; $10,000- C. Black; 400; $5,000- D. Black; 200; $10,000e 13. If a firm is discriminatory, the discriminate coefficient is worker and black worker. And the number of workers hired is A. 1; lesse when the firm is indifferent between hiring white than the number hired if it's not discriminatory. - B. 1; more C. 0.25; lesse D. 0.25;more 14. If the firm is discriminatory with discrimination coefficient 2.5, it hires only- employment is A.White;400; $8,000 worker, and the number of The profit is B. White; 500; $10,000 C. Black; 400;$8,000 D. Black; 500; $10,000
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