Assume Xs earn $5 less per hour than Ys and a firm employs 200 workers. There are 8 working hours in the day, 5 working days a week, and 50 working weeks a year. If the firm discriminates and hires only Ys, how much profit will it lose in a year? (Assume Xs have the same work skills as Ys.)

Question

Quizplus · Accepted Answer

The firm loses $5 per hour for each X worker it does not hire. There are 200 workers, 8 hours per day, 5 days per week, and 50 weeks per year. So, the firm loses $5 * 200 * 8 * 5 * 50 = $2,000,000 in a year.

Assume Xs Earn $5 Less Per Hour Than Ys and a Firm