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Assume That Workers Are of the Same Race and Either

Question 179

Multiple Choice

Assume that workers are of the same race and either male or female.Male and female workers possess the same stock of human capital and hence they are equally productive.The wage rate is $10 per hour for male workers and $9 per hour for female workers.
-Refer to the information above.Firm A practices employer discrimination and hires only male workers while Firm B is willing to hire either gender.If both firms need to hire 10 workers then


A) firms A and B will have the same labour costs.
B) firm A's labour cost will be higher,but so will productivity.
C) firm B's labour cost will be lower,but so will productivity.
D) firm B's labour cost will be lower,and productivity will be the same.
E) firm B will hire a mixture of male and female workers.

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