Asked by
Allison Corpuz
on Nov 16, 2024
Verified
Refer to Scenario 19-4. If consumers do not discriminate between bald barbers and barbers with hair, then
A) all barbershops now earn a normal economic profit.
B) competition will ensure the difference in wages will persist.
C) barbershops that hire barbers with hair will be more profitable than those that don't.
D) barbershops that hire bald barbers will be more profitable than those that don't.
Equilibrium Wage
The compensation level at which labor supply meets labor demand.
Economic Profit
Total revenue minus total cost, including both explicit and implicit costs.
Barbershops
Establishments that provide hair cutting, grooming, and sometimes additional services primarily for men.
- Recognize and elucidate various types of discrimination within the labor market.
- Evaluate the concepts of compensating differentials and compensating variation.
Verified Answer
LN
Learning Objectives
- Recognize and elucidate various types of discrimination within the labor market.
- Evaluate the concepts of compensating differentials and compensating variation.
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