For questions 11-14: Suppose a firm's production function is given by- q = 8/Ew + Ep, where Ey 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- MPĘ = VEw+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 function, the relationship between black workers and white workers is A. Perfect substitutes B. Complementary 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; $10,000 + 13. If a firm is discriminatory, the diseriminate 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___e B. White; 500; $10,000- C. Black; 400; $8,000 D. Black; 500; $10,000-

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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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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