Question: 4. This question is about discrimination. a) Explain, using both intuition and mathematical formulae, the conditions under which taste discrimination can persist in a market

4. This question is about discrimination. a) Explain, using both intuition and mathematical formulae, the conditions under which taste discrimination can persist in a market with perfect competition. Explain the conditions under which it cannot persist. (3 marks) b) Use your thinking and creativity to answer this question: why is statistical discrimination still discrimination? Think about the observable characteristics that employers may relate to expected productivity and those that they generally do not relate to it. (I cannot give more of a hint than this. It's already a pretty big one)

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