Assume the marginal revenue product

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Assume the marginal revenue product ( MRP ) for minority workers is given by

MRP = 40 − 5N m , where N m is the number of minority workers. The market wage for minorities is $5/hr. Discriminating firms devalue the contributions of minorities at a rate of $5/hr (i.e., d = 5).

(a) How many minority workers do non-discriminating firms hire? What is their profit level?

(b) How many minority workers do discriminating firms hire? What is their profit level?

Reference no: EM13984032

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