Suppose the marginal revenue product (MRP) for international workers is given by MRPM = = 30 - 5M, where M is the number of international workers employed. The market wage for these workers is $5/hr and discriminating firms devalue the contributions of international workers at a rate of $5/hr (i.e., d = 5). Question A How many workers do non- discriminating firms hire: What is their economic profit level: $ Question B How many workers do discriminating firms hire: What is their economic profit level: $
Suppose the marginal revenue product (MRP) for international workers is given by MRPM = = 30 - 5M, where M is the number of international workers employed. The market wage for these workers is $5/hr and discriminating firms devalue the contributions of international workers at a rate of $5/hr (i.e., d = 5). Question A How many workers do non- discriminating firms hire: What is their economic profit level: $ Question B How many workers do discriminating firms hire: What is their economic profit level: $
Chapter1: Making Economics Decisions
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Transcribed Image Text:Suppose the marginal revenue product (MRP)
for international workers is given by MRPM
=
= 30 - 5M, where M is the number of
international workers employed. The market
wage for these workers is $5/hr and
discriminating firms devalue the contributions of
international workers at a rate of $5/hr (i.e., d
=
5). Question A How many workers do non-
discriminating firms hire: What is their economic
profit level: $ Question B How many workers do
discriminating firms hire: What is their economic
profit level: $
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