Statistical discrimination : can persist in the long run if differences in average characteristics among groups continue.

will tend to diminish in the long run because nondiscriminating firms will drive out discriminating firms.

requires that employers have discrimination coefficients greater than zero.

is also known as occupational segregation.

Qwest airlines has implemented a program to recycle all plastic drink cups used on their aircraft. their goal is to generate $7 million by the end of the recycle program's five-year life. each recycled cup can be sold for $0.005 (1/2 cent). a. how many cups must be recycled annually to meet this goal? assume uniform annual plastic cup usage and a 0% interest rate. b. repeat part (a) when the annual interest rate is 12%. c. why is the answer to part (b) less than the answer to part (a)?