1.Suppose the typical firm's finance look like:

10 male workers @ $100,000 $1,000,000

0 female workers @ $70,000 $0

Bondholders$0

Stockholders$200,000

Total$1,200,000

True or False and explain: assuming that the male-female pay gap is 50% taste-based discrimination and 50% statistical discrimination, a non-discriminatory employer could increase his profits by 75%