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(a) Suppose there are two pizza restaurants, GoGo Pizza and RunRun Pizza. If GoGo Pizza discriminates against black workers, while RunRun Pizza employs both white
(a) Suppose there are two pizza restaurants, GoGo Pizza and RunRun Pizza. If GoGo Pizza discriminates against black workers, while RunRun Pizza employs both white and black workers, what will be the possible economic penalty for GoGo Pizza? Explain with the labor market diagram for GoGo Pizza.
(b) What externality problem do you expect in the market for plastic bags? How does the government correct the inefficiency of the market? Explain in detail.
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