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?

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.