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Farmingdale State College Production function for a firm is Q = 40 In(Ew + Es + 1). Ew and Es are the number of Caucasians
Farmingdale State College Production function for a firm is Q = 40 In(Ew + Es + 1). Ew and Es are the number of Caucasians and African Americans working for the firm. The marginal product of labor is 40 MPE = Ew+ EB + 1 The market wage for African American workers is $40, the market wage for Caucasian workers is $50, and the price of each unit of output is $20. 1. In a non-discriminating firm how many Caucasians will be hired? 2. In a non-discriminating firm how many African Americans will be hired? 3. If there are no other costs how much profit is earned by the non-discriminating firm? (Profit = Revenue - Cost), (Revenue = Price x Quantity). Production function is given by the firm's production quantity.) 4. With a discrimination coefficient of 0.2 against Afircan Americans, how many Caucasians would the firm hire? 5. How many African Americans would the firm hire with a discrimination coefficient of 0.2 against Afircan Americans,? (The answer may not be a whole number. It doesn't make sense to hire a fraction of a worker, suppose for this question to just use the exact number. Example, if you get 11.37 as the answer, enter 11.37 and then use that for calculating profit.6. With a discrimination coefficient of 0.2 against African Americans, if there are no other costs, how much profit is earned by the firm? (When calculating profit, please use the exact number when calculating profit, even if it's a fraction). 7. How many Caucasians would the firm hire with a discrimination coefficient of 0.6 against African Americans? 8. How many African Americans would the firm hire with a discrimination coefficient of 0.6 against African Americans? 9. With a discrimination coefficient of 0.6 against African Americans, if there are no other costs, how much profit is earned by the firm
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