Show all your work. No credit will be given for unsupported answers.

Suppose the marginal revenue product of all workers in a particular labor market is

MRP = 100 - 2L, where L is number of workers. Suppose the hourly wage of black workers in this market is $30 and 30 of them are hired.

(a) Is there discrimination in this labor market against black workers? Explain why or why not.If yes, by how much do discriminating employers devalue the actual productivity of black workers?

(b) How much profit is lost because of discrimination?