Asked by Grace Hummel on Apr 28, 2024
Verified
Suppose the market wage rate for whites is $18 an hour and the monetary value a prejudiced employer attaches to the disutility of hiring African Americans is $3. This employer will be indifferent between hiring African Americans and whites only when the African-American wage rate is
A) $3.
B) $12.
C) $15.
D) $21.
Prejudiced Employer
An employer that treats potential or current workers unfairly based on personal prejudices that have nothing to do with how well they perform their jobs.
Wage Rate
the amount of money paid to an employee per unit of time (e.g., hourly, weekly) for their labor.
Disutility
Disutility refers to the dissatisfaction or disappointment that consumers experience from a particular good or service.
- Evaluate the impact of discrimination on wages and employment in labor markets.
Verified Answer
Learning Objectives
- Evaluate the impact of discrimination on wages and employment in labor markets.
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