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Question C - 25 Points Recall Becker's model of discrimination. Suppose that the labor market is competitive and there are a total of 1000 Black
Question C - 25 Points Recall Becker's model of discrimination. Suppose that the labor market is competitive and there are a total of 1000 Black workers and 1000 White workers. All workers have the same level of productive ity, each contributing $150 worth of output, and all workers supply their labor perfectly inelastically. Finally, there are a total of V = 2500 job slots available. (a) If there is no discrimination by any firm, what are the wages paid to White and Black workers? (5 pts) (b) Suppose that now some firms discriminate against Black workers. de is an employer's coefficient of discrimination. Assume that V(6) = 500 + 1006, where V(6) is the cumulative number of jobs being offered for all de
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