Question

9. Discrimination The following table lists the name, gender, height, and reservation wage of 10 people who are willing to work as firefighters in the imaginary town of Timber Creek. (Note: The reservation wage is the lowest wage a person is willing to accept in order to work.) Height Reservation Wage (Inches) Gender ($ per week) Name 250 Isabella 63 69 275 Fjorentina 300 72 Grant 64 325 350 Catherine 68 Akram 71 375 Emily 65 400 Horacio 425 450 Dimitri 70 67 Benjamin 475 The lowest wage that Timber Creek can pay to hire five firefighters is per week Suppose the Timber Creek City Commission imposes the restriction that all firefighters hired by the town must be at least 67 inches in height. Under this new regulation, the wage rate the city must pay to attract five firefighters rises per week. The gender composition of employment has also changed so that by

Answer 1

1. lowest wage = sum of lowest 5 RWs = 250+275+300+325+350 = $ 1500(I,F,G,J,C)

2. with new regulation, I, J , E , H are out.

Out of remaining, lowest wage matrix = F,G,C,A,D = 275+300+350+375+450 = $ 1750

lowest amount increased by $250

Gender composition has changed from 3F,2M to 2F,3M.