3. A firms production function is given by Q = 10 x (EM + EF)1/2, where EM and EF
are the quantities or male and female employees. Males and females are perfect
substitutes. Please note that the marginal product of labor is given by the
equation MPE = 5/(EM + EF)1/2. The firm sells its output for $50. The market
wage for males is $25 and the market wage for females is $15.
a. How many male workers would the firm hire if the employer did not
discriminate? How many female workers would be hired? What are the
firmââ¬â¢s profits?
4. Suppose that everything is the same as reported in Question 3 except that the firm
discriminates against females with a discrimination coefficient of 1.7. How many
male workers will be hired? How many female workers will be hired? What are
the firmââ¬â¢s profits?
3. A firms production function is given by Q = 10 x (EM + EF)1/2, where EM and EF
are the quantities or male and female employees. Males and females are perfect
substitutes. Please note that the marginal product of labor is given by the
equation MPE = 5/(EM + EF)1/2. The firm sells its output for $50. The market
wage for males is $25 and the market wage for females is $15.
a. How many male workers would the firm hire if the employer did not
discriminate? How many female workers would be hired? What are the
firmââ¬â¢s profits?
4. Suppose that everything is the same as reported in Question 3 except that the firm
discriminates against females with a discrimination coefficient of 1.7. How many
male workers will be hired? How many female workers will be hired? What are
the firmââ¬â¢s profits?
