1. In the world of Blade Runner, there exist humans and replicants (machines that look and...
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1. In the world of Blade Runner, there exist humans and replicants (machines that look and behave identically to humans). Humans and replicants are equally efficient at getting food prep work done. However, discrimination towards replicants has pushed their wage down lower than humans, such that humans get paid wh = 24, while replicants get paid w = = 22 for food prep work. Suppose McDonald's production function is 1 q = 220(E + E) which implies MPE 110 1. McDonald's sells their output (En+Er) for $3.00 (p = 3). Use the Becker Model to answer the following: a. If McDonald's does not discriminate, how many replicants and humans do they hire? b. If McDonald's does not discriminate, how much profit do they make? c. Suppose now that McDonald's has a discrimination coefficient for replicants of d = 0.25, how many replicants and humans do they hire now? d. Given McDonald's is discriminating against replicants with d = 0.25, what is their new profit? e. How do we interpret d = 0.25? f. What type of discrimination is being practiced here? What does that mean in context of the problem? 1. In the world of Blade Runner, there exist humans and replicants (machines that look and behave identically to humans). Humans and replicants are equally efficient at getting food prep work done. However, discrimination towards replicants has pushed their wage down lower than humans, such that humans get paid wh = 24, while replicants get paid w = = 22 for food prep work. Suppose McDonald's production function is 1 q = 220(E + E) which implies MPE 110 1. McDonald's sells their output (En+Er) for $3.00 (p = 3). Use the Becker Model to answer the following: a. If McDonald's does not discriminate, how many replicants and humans do they hire? b. If McDonald's does not discriminate, how much profit do they make? c. Suppose now that McDonald's has a discrimination coefficient for replicants of d = 0.25, how many replicants and humans do they hire now? d. Given McDonald's is discriminating against replicants with d = 0.25, what is their new profit? e. How do we interpret d = 0.25? f. What type of discrimination is being practiced here? What does that mean in context of the problem?
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