The desire to maximize profits can work against racial and other types of discrimination. To see why, consider two equally productive accountants named Ted and Jared. Ted is black, and Jared is white. Both can complete 10 audits per month. Instructions: Enter your answers as a whole number. In part b, round your answer for profit rate to 1 decimal place. b. If the market price that accounting firms charge their clients for an audit is $2,000, what would the accounting profit per audit be for a firm that hired either Ted or Jared? $ What is the profit rate as a percentage? c. Suppose that firm A dislikes hiring black accountants, while firm B is happy to hire them. So Ted ends up working at firm B rather than firm A. If Ted works 11 months per year, how many audits will he complete for firm B each year? audits How much in accounting profits will firm B earn each year from those audits? d. Because firm A passed on hiring Ted because he was black, firm A is forgoing the profits it could have earned if it had hired Ted. If the firm is willing to forgo up to $10,000 per year in profit to avoid hiring blacks, by how many dollars will firm A regret its decision not to hire Ted?
The desire to maximize profits can work against racial and other types of discrimination. To see why, consider two equally productive accountants named Ted and Jared. Ted is black, and Jared is white. Both can complete 10 audits per month. Instructions: Enter your answers as a whole number. In part b, round your answer for profit rate to 1 decimal place.
b. If the market price that accounting firms charge their clients for an audit is $2,000, what would the accounting profit per audit be for a firm that hired either Ted or Jared? $ What is the profit rate as a percentage?
c. Suppose that firm A dislikes hiring black accountants, while firm B is happy to hire them. So Ted ends up working at firm B rather than firm A. If Ted works 11 months per year, how many audits will he complete for firm B each year? audits How much in accounting profits will firm B earn each year from those audits?
d. Because firm A passed on hiring Ted because he was black, firm A is forgoing the profits it could have earned if it had hired Ted. If the firm is willing to forgo up to $10,000 per year in profit to avoid hiring blacks, by how many dollars will firm A regret its decision not to hire Ted?
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