Assume Xs earn $3 less per hour than Ys and a firm employs 300 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

Xs earn $3 less per hour than Ys, so if the firm hires only Ys, it will save $3 per hour per worker. With 300 workers, 8 working hours per day, 5 working days per week, and 50 working weeks per year, the firm will save $3 * 300 * 8 * 5 * 50 = $1,800,000 in a year.

Assume Xs Earn $3 Less Per Hour Than Ys and a Firm