In the Standard Becker Model of Discrimination, Each Firm Is

In the standard Becker model of discrimination, each firm is associated with a discrimination coefficient of d > 0 and acts as if the wage paid to blacks is w_B(1 + d) where w_B is the actual hourly wage paid to blacks. In equilibrium, a threshold level of d, labeled d*, comes about that sorts firms based on hiring decisions. Which of the following is not an outcome of this model, assuming whites and blacks are equally productive?

A) All firms with d ≠ d* will employ all blacks or all whites.
B) Profits fall as d increases as long as d < d*.
C) In the long run, discrimination will be competed away in a competitive labor market.
D) All discriminating firms hire only white workers.
E) All firms with d > d* earn the same amount of profit.