Question #$5$: Employer Discrimination $[18$ Points$]$

Suppose that the market wage for MLS players is $$3\mathrm{.}4$ million per season. Suppose the owner of the New

York Red Bulls has a taste for discrimination against Brazilian players. This coefficient of discrimination

is $0\mathrm{.}56$ for Brazilian$-$born players. Assume that MLS players are equally productive.

$($a$)$ If the discriminating owner paid a Brazilian born player $$3\mathrm{.}4$ million, what would the owner perceive

the wage to be for the Brazilian$-$born soccer player? $[4$ Points$]$

$($b$)$ What would the wage have to be for Brazilian$-$born soccer players before the discriminating owner is

indifferent between hiring a Brazilian$-$born soccer player and hiring a non Brazilian$-$born soccer player $($if

non Brazilian$-$born soccer players are paid $$3\mathrm{.}4$ million$)?$ Round your answer to two $(2)$ decimal

places. $[8$ Points$]$

$($c$)$ Explain why the Becker model would argue that sports owners who have a taste for discrimination

will be driven out of the industry. $[6$ Points$]$