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Assume whites and blacks are equally productive. The going wage for whites is $16 per hour, while the going wage for blacks is $10 per hour. Which of the following will characterize the labor market equilibrium when some employers have discriminatory preferences against hiring black workers?
A. All discriminating employers will hire only whites.
B. All firms will earn the same amount of profit regardless of their discriminatory preferences.
C. Any employer with a discrimination coefficient greater than 0.6 will hire only white workers.
D. Any employer with a discrimination coefficient greater than 1.6 will hire only black workers.
E. Any employer with a positive discrimination coefficient will hire only white workers.
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