1 5. (8 Points) Employer Discrimination Assume that Type J and Type K workers are distinguishable but are perfect substitutes in production. The competitive equilibrium wages for each worker type are W; = $20 and WK = $10. Assume that . (some) employers have a distinct preference for workers of Type J in the sense that hiring and paying a worker of Type J gives rise to a disutility of W], but hiring and paying a worker of Type K gives rise to a disutility of WK'(1 + d), where d 2 0 is the coefcient of discrimination. Thus, if d = 0, the employer is non-discriminatory, and higher values of d mean greater relative dislike for workers of Type K. a) (2) Draw on a diagram the demand curve for type-K labor, VMP(VEK) Show on your diagram how many Type K workers will be hired by an employer with \\(i) d = 0; (ii) d 0.4; and (iii) d 1. 5. Explain your answer briey. , b) (4) Use your answers to the above question to describe (1) the J / K composition of the workforce across employers; and (ii) the level of prots as a function of d. c) (2) Explain briey the rationale for behaving that discrimination against Type K workers wild \"disap- pear" over time