Question: Suppose a firm's production function is given by q= 4(EM+EF)1/2 whereEMis the number of males andEFis the number of females employed by the firm, respectively.

Suppose a firm's production function is given by

q= 4(EM+EF)1/2

whereEMis the number of males andEFis the number of females employed by the firm, respectively. Suppose the wage rates for males and females arewM= $25andwF= $20. The price of each unit of output is $30.

It can be shown that the marginal product of labor with this production function is 2 MPE= (EM + EF) 1/2 (d) How many workers would a firm hire if it does not discriminate? How much profit does [5 pts] this non-discriminatory firm earn if there are no other costs? (e) Now, suppose the firm is discriminatory and has a discrimination coefficient of 0.3 attached [3 pts] to female workers, and a discrimination coefficient of 0 attached to male workers. What proportion of the firm's labor will come from male workers? (f) How many workers does this firm hire? How much profit does it earn? [5 pts]

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