**Economic Discrimination and Profitability Analysis****Scenario:**Suppose the owners of Firm A and Firm B hire only women due to discriminatory wage behavior analyzed as follows:- Formula for Firm A: $ W_F(1 + d_A) < W_M $- Formula for Firm B: $ W_F(1 + d_B) < W_M $$ W_F $ = Wage for female workers $ W_M $ = Wage for male workers $ d_A $, $ d_B $ = Discrimination coefficients for Firms A and B, respectively**Question:**If the discrimination coefficient is higher for Firm A than Firm B ($ d_A > d_B $), then which firm will earn higher profits?**Options:**A. Firm A will earn higher profits. B. Firm B will earn higher profits. C. Both firms will earn the same profits.

Suppose the owners of Firm A and Firm B hire only women because: W(1 + da) < Wmand WF(1 + d3) < WM- If the discrimination coefficient is higher for Firm A than Firm B (da > d3), then which firm will earn higher profits? A. Firm A will earn higher profits. B. Firm B will earn higher profits. C. Both firms will earn the same profits.

Suppose the owners of Firm A and Firm B hire only women because: W(1 + da) < Wmand WF(1 + d3) < WM- If the discrimination coefficient is higher for Firm A than Firm B (da > d3), then which firm will earn higher profits? A. Firm A will earn higher profits. B. Firm B will earn higher profits. C. Both firms will earn the same profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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