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Suppose That Firms Can Hire Whites for $10 an Hour

Question 177

Multiple Choice

Suppose that firms can hire whites for $10 an hour or equally productive blacks for $8 an hour. Which of the following is the most likely hiring practice for most firms?


A) All firms would follow the wage rates paid for respective white and black.
B) Firms that want to minimize cost would prefer to hire whites.
C) Firms that want to maximize profit would prefer to hire blacks.
D) All firms would hire an equal number of white and black workers.

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