Question
Suppose the marginal revenue product of all workers in Barbacoa's labour market is: MRPL = 20 - L Where: MRPL = $/Hour Worked L =
Suppose the marginal revenue product of all workers in Barbacoa's labour market is:
MRPL = 20 - L
Where: MRPL = $/Hour Worked
L = the number of workers
Use the above information to answer the questions below.
A) Barbacoa has only one grocery store chain on the whole island called Jerk's Grocery (it's famous for the bbq 'jerk' chicken it sells). Suppose that women at Jerks are receiving $8 per hour and 10 women are hired. Are women being discriminated against by Jerk's? Why or why not?
b) From a), is Jerk's profit maximizing? Does your answer to b) support if women are being discriminated against by Jerk's (i.e. is the employer discriminatory or non-discriminatory)? Draw Jerk's MRP-Wage Graph and use math to support your answer.
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