Can you solve this activty for me please got stuck,
Each employer faces competitive weekly wages of $2,000 for whites and $1,400 for blacks.
Suppose employers under-value the efforts/skills of blacks in the production process. In
particular, every firm is associated with a discrimination coefficient, d where 0 ≤ d ≤ 1. In
particular, although a firm’s actual production function is Q = 10(EW + EB), the firm manager
acts as if its production function is Q = 10EW + 10(1 – d) EB. Every firm sells its output at a
constant price of $240 per unit up to a weekly total of 150 units of output. No firm can sell
more than 150 units of output without reducing its price to $0.
(a) What is the value of the marginal product of each white worker?
(b) What is the value of the marginal product of each black worker?
(c) Describe the employment decision made by firms for which d = 0.2 and d = 0.8
respectively.
(d) For what value(s) of d is a firm willing to hire blacks and whites?

a. The marginal product of each white worker is 143%

b. The marginal product of each black worker is 70%

c. Since, adjusted wage of black labor with d=0.2 is less than the wage of white labor of $2,000, the profit maximizing firm would hire only black labor.

Since, adjusted wage of black labor with d=0.8 is greater than the wage of white labor of $2,000, the profit maximizing firm would hire only white labor.

d. Value of D coefficient that allows to employ black and white labor is 0.43

Explanation:

According to the given data we have the following:

Weekly wage for white labor is $2,000

Weekly wage for black labor is $1,400

production function is Q = 10(EW + EB)

manager production function is Q = 10EW + 10(1 – d) EB

Price of the product is $240

Weekly output is 150 units

a. To calculate the value of the marginal product of each white worker we use the following formula:

marginal product of each white worker=Weekly wage for white labor/Weekly wage for black labor

marginal product of each white worker=$2,000/$1,400

marginal product of each white worker=1.43=143%

b. To calculate the value of the marginal product of each black worker we use the following formula:

marginal product of each black worker=Weekly wage for black labor/Weekly wage for white labor

marginal product of each black worker=$1,400/$2,000

marginal product of each black worker=0.7=70%

c. To describe the employment decision we have to calculate the adjusted wage of black labor with d=0.2 and d=0.8 as follows:

adjusted wage of black labor with d=0.2=Wage black(1+D coefficient)

=1,400(1+0.2)

=1400(1.2)

=1,680.

Since, adjusted wage of black labor with d=0.2 is less than the wage of white labor of $2,000, the profit maximizing firm would hire only black labor.

adjusted wage of black labor with d=0.2=Wage black(1+D coefficient)

=1,400(1+0.8)

=1,400(1.8)

=2,520

Since, adjusted wage of black labor with d=0.8 is greater than the wage of white labor of $2,000, the profit maximizing firm would hire only white labor.

d. To calculate for what value(s) of d is a firm willing to hire blacks and whites we would have to calculate the following formula:

Wage black(1+D coefficient)=Wage white

1,400(1+D coefficient)=2,000

(1+D coefficient)=2,000/1,4000

D coefficient=1.43-1

D coefficient=0.43

Value of D coefficient that allows to employ black and white labor is 0.43

answer: life insurance

explanation:

answer; that person may have a larger tax bill to pay on income taxes;