Scenario 19-4
Assume that the labor market for barbers is competitive and that it is differentiated into two groups: barbers who are bald (or going bald) and those who have a full head of hair. Assume that the barbers in this market have identical hair-cutting ability, regardless of whether they are bald or not. Currently, the equilibrium wage in the bald barber market is lower than that in the nonbald market. Further assume that the market for haircuts is competitive.
-Refer to Scenario 19-4. If consumers do not discriminate between bald barbers and barbers with hair, then
A) competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical.
B) the equilibrium wage in the "bald" market will eventually fall.
C) the equilibrium wage in the "hairy" market will eventually rise.
D) wages in the market for barbers can never be in equilibrium.
Correct Answer:
Verified
Q220: In the presence of discrimination by customers,
A)market
Q221: Scenario 19-6
The after-school tutoring industry is competitive,
Q222: Scenario 19-6
The after-school tutoring industry is competitive,
Q223: Scenario 19-5
Kofi works part-time at a department
Q224: Scenario 19-6
The after-school tutoring industry is competitive,
Q225: Scenario 19-4
Assume that the labor market for
Q226: Scenario 19-5
Kofi works part-time at a department
Q228: Scenario 19-6
The after-school tutoring industry is competitive,
Q229: Which of the following scenarios exhibits statistical
Q230: Scenario 19-4
Assume that the labor market for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents