part d only needed

2. [Fall 2020 MIDTERM] Compensating Differentials: Consider a primitive economy in which there are two kinds of jobs, deer hunting and fishing. Suppose the marginal product of hunters is given by the equation h=200-H, where H is the total number of hunters in the economy, and h is their marginal product, measured in pounds of food. The marginal product of fisherman is given by the equation f=200-F, where F is the total number of fisherman in the economy, and f is their marginal product, also measured in pounds of food. In other words, 1 pound of fish is worth 1 pound of deer. There are 210 workers in the economy, 147 whites and 63 blacks, all equally productive in both fishing and hunting. All workers prefer fishing to hunting, but preferences differ across individuals: the distribution of equalizing differences range evenly from 0 to 21. For example, if fisherman earned 2 pounds less than hunters, 20 people (2/21 of the total) would choose hunting, including 14 whites and 6 blacks. a. If the economy is competitively organized, how many people will be fisherman and how many will be hunters? What will be the wage differential in equilibrium? b. Now suppose that blacks are not allowed to hunt. How will this affect the equilibrium? What will happen to the average wages of whites and blacks? c. Did prejudice cause discrimination in that case? If so, identify the winners and losers. d. Does it make sense to interpret the exclusion of blacks from hunting as rational exploitation of the minority by the majority? 2. [Fall 2020 MIDTERM] Compensating Differentials: Consider a primitive economy in which there are two kinds of jobs, deer hunting and fishing. Suppose the marginal product of hunters is given by the equation h=200-H, where H is the total number of hunters in the economy, and h is their marginal product, measured in pounds of food. The marginal product of fisherman is given by the equation f=200-F, where F is the total number of fisherman in the economy, and f is their marginal product, also measured in pounds of food. In other words, 1 pound of fish is worth 1 pound of deer. There are 210 workers in the economy, 147 whites and 63 blacks, all equally productive in both fishing and hunting. All workers prefer fishing to hunting, but preferences differ across individuals: the distribution of equalizing differences range evenly from 0 to 21. For example, if fisherman earned 2 pounds less than hunters, 20 people (2/21 of the total) would choose hunting, including 14 whites and 6 blacks. a. If the economy is competitively organized, how many people will be fisherman and how many will be hunters? What will be the wage differential in equilibrium? b. Now suppose that blacks are not allowed to hunt. How will this affect the equilibrium? What will happen to the average wages of whites and blacks? c. Did prejudice cause discrimination in that case? If so, identify the winners and losers. d. Does it make sense to interpret the exclusion of blacks from hunting as rational exploitation of the minority by the majority