Suppose That an Employer Hires Workers with Blue Eyes and Workers

Multiple Choice

Suppose that an employer hires workers with blue eyes and workers with brown eyes. Each type of worker has the same productivity. Which of the following is correct if the employer discriminates by offering blue-eyed workers lower wages than brown-eyed workers?

A) The employer will be just as cost efficient as a nondiscriminating employer.
B) The employer will face higher costs than a nondiscriminating employer.
C) The employer will have lower costs.
D) The employer will have higher profits.
E) Both a and c are correct.