Question: 9-4. A firm's production function is given by Q = 40 In(Ew + EB + 1) where Ew and EB are the number of white

 9-4. A firm's production function is given by Q = 40

9-4. A firm's production function is given by Q = 40 In(Ew + EB + 1) where Ew and EB are the number of white workers and Black workers employed by the firm, respec- tively. From this it can be shown that the marginal product of labor is 40 MPEEw + EB + 1' Suppose the market wage for Black workers is $50, the market wage for white work- ers is $100, and the price of each unit of output is $20. (a) How many workers of each race would a nondiscriminating firm hire? How much profit is earned if there are no other costs? (b) How many workers of each race would a firm with a discrimination coefficient of 0.6 against Black people hire? How much profit is earned if there are no other costs? (c) How many workers of each race would a firm with a discrimination coefficient of 1.2 hire? How much profit is earned if there are no other costs

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