Suppose the hourly marginal revenue product of all workers in a particular labor market is L = 20 – , where = the number of workers. The hourly wage rate for women in this market is = $5.75. What is the gap between L and wage in this labor market if = 12? Is this gap a reliable measure of discrimination against women in this market?
Suppose the marginal revenue product of all workers in a particular labor market is L = 20 – , where = the number of workers. Suppose women are receiving $8 per hour and 10 women are hired.How many workers would a nondiscriminatory employer hire? How much profit is the employer willing to forgo by hiring these 10 female workers?