Non-minorities in the labor market

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Q1. Illustrate the basis of tension between cooperation and self-interest in a market characterized by oligopoly. Use an instance of a definite cartel agreement to demonstrate why this tension creates insecurity in cartels.

Q2. Revisit the definition of affirmative action: "Affirmative Action maybe defined as proactive steps to erase differences between minorities and non-minorities in the labor market". Suggest a modified version of the Becker model that includes a policy intervention requiring businesses to proactively hire Black workers. Describe the changes in the model parameter(s) and resulting changes if any in the hiring decisions of the three types of firms.

Reference no: EM136985

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