Assume all profit-maximizing employer types sell output in perfectly competitive markets and hire in perfectly competitive labor markets. There are two types of equally-qualified workers: Preferred workers (P) and Non-Preferred workers (NP). The wage paid to P workers is $20/hour. Fill in the blanks based on the Taste Discrimination Model assuming employers are the source of the discrimination. Employers can hire as many P and NP workers as desired. Answers are rounded to two decimal places. Employer Type Discrimination Coefficient A 0 B 0.2 CDE 0.4 0.8 1.00 From the perspective of Type C employers, the cost of hiring an NP worker is [Select] く per hour, when the market wage is $20/hour. The maximum wage a Type C employer is willing to pay an NP worker is [Select] V when the wage paid to P workers is $20/hour. If the market wage for P workers is $20/hour and the market wage for NP workers is $16/hour, Type C employers will hire [Select] V If the market wage for P workers is $20/hour and the market wage for NP workers is $16/hour [Select]

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Labor Markets And Income Distribution
Section: Chapter Questions
Problem 14SQ
Question
Assume all profit-maximizing employer types sell output in perfectly competitive
markets and hire in perfectly competitive labor markets. There are two types of
equally-qualified workers: Preferred workers (P) and Non-Preferred workers (NP).
The wage paid to P workers is $20/hour. Fill in the blanks based on the Taste
Discrimination Model assuming employers are the source of the discrimination.
Employers can hire as many P and NP workers as desired. Answers are rounded to
two decimal places.
Employer
Type
Discrimination
Coefficient
A
0
B
0.2
CDE
0.4
0.8
1.00
From the perspective of Type C employers, the cost of hiring an NP worker is
[Select]
く
per hour, when the market wage is $20/hour. The
maximum wage a Type C employer is willing to pay an NP worker is
[Select]
V
when the wage paid to P workers is $20/hour. If the
market wage for P workers is $20/hour and the market wage for NP workers is
$16/hour, Type C employers will hire [Select]
V
If the market
wage for P workers is $20/hour and the market wage for NP workers is $16/hour
[Select]
Transcribed Image Text:Assume all profit-maximizing employer types sell output in perfectly competitive markets and hire in perfectly competitive labor markets. There are two types of equally-qualified workers: Preferred workers (P) and Non-Preferred workers (NP). The wage paid to P workers is $20/hour. Fill in the blanks based on the Taste Discrimination Model assuming employers are the source of the discrimination. Employers can hire as many P and NP workers as desired. Answers are rounded to two decimal places. Employer Type Discrimination Coefficient A 0 B 0.2 CDE 0.4 0.8 1.00 From the perspective of Type C employers, the cost of hiring an NP worker is [Select] く per hour, when the market wage is $20/hour. The maximum wage a Type C employer is willing to pay an NP worker is [Select] V when the wage paid to P workers is $20/hour. If the market wage for P workers is $20/hour and the market wage for NP workers is $16/hour, Type C employers will hire [Select] V If the market wage for P workers is $20/hour and the market wage for NP workers is $16/hour [Select]
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