An employer whose discrimination coefficient is $4 will

Question

Quizplus · Accepted Answer

The discrimination coefficient of 4 implies that the employer values a preferred-race worker 4 times more than a non-preferred race worker. Therefore, to compensate for this differential, the employer would only hire non-preferred race workers if the wage differential is at least $4/hour or more. Hiring a preferred-race worker for less would result in a cost savings for the employer due to the discrimination coefficient. Therefore, the employer would only hire preferred-race workers if the non-preferred-preferred wage differential is less than $4/hour. Choice C is the only option that fits this criterion.

An Employer Whose Discrimination Coefficient Is $4 Will