Refer to the information provided.If consumers do not discriminate between bald barbers and barbers with hair, then:
A)wages in the market for barbers can never be in equilibrium
B)competitive pressure in the market for haircuts will eventually cause the equilibrium wage in both markets to be identical
C)the equilibrium wage in the 'bald' market will eventually fall
D)the equilibrium wage in the 'non-bald' market will eventually rise

Question

Quizplus · Accepted Answer

If consumers do not discriminate between bald and non-bald barbers, the market for haircuts will be subject to competitive pressure. This means that wages in the market for haircuts will eventually adjust to reach equilibrium, and the equilibrium wage in both markets will be identical.

Refer to the Information Provided