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Taste-based Discrimination Theory Suppose black and white workers are equally productive, but the market wage for black workers is $10, and the market wage for

Taste-based Discrimination Theory

Suppose black and white workers are equally productive, but the market wage for black workers is $10, and the market wage for white workers is $13. True or false: a firm with a discriminatory coefficient against black workers of d=0 will make higher economic profit than a firm with a discriminatory coefficient against black workers of d=0.4.

True

False

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