An employer whose discrimination coefficient is $4 will

Question

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The discrimination coefficient represents the amount an employer is willing to pay to hire a preferred-race worker over a nonpreferred-race worker. If the discrimination coefficient is $4, and the actual wage differential is $3 (less than the discrimination coefficient), the employer will still prefer to hire only preferred-race workers, as the cost of discrimination does not exceed their bias.

An Employer Whose Discrimination Coefficient Is $4 Will