Question
Assume a professional sports league has two teams (for simplicity). Team A has some prejudice against minority players, while Team B does not. Team A
Assume a professional sports league has two teams (for simplicity). Team A has some prejudice against minority players, while Team B does not. Team A has a discrimination coefficient that increases as it employs more minority players, written as: dM = 0.01EM where EM is the number of minority players the team hires. The teams face competitive wages of wW = $150 for non-minority players and wM = $100 for minority players. Lastly, assume each team must employ 200 players. Minority and non-minority players are equally productive.
(a) How many minority players and non-minority players will Team A employ? How many minority players and non-minority players Team B hire? Explain.
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