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3. Two firms operate in the same competitive labour market. They both have the same demand "D" for workers. One company FIRM "A" discriminates against certain group of workers and the other, FIRM "B" does not discriminate against any group of workers. Wage 51 W1 Quantity a) Based on the diagram what is the supply of workers as seen by FIRM "A", S1 or S2? Explain your answer. b) Based on the diagram, which firms pays the higher wage rate to workers? Explain b) A new president is hired by FIRM "A". First day she issues a new policy, "no more discrimination". Describe and explain the impact this policy will have on profitability of FIRM "A" and FIRM "B"