Asked by Ashley Minaya on Jul 01, 2024
Verified
Refer to Scenario 19-4. Competition in the market for haircuts is consistent with which of the following statements?
A) Firms hiring nonbald barbers will have a cost advantage, leading to an increase in the demand for nonbald barbers.
B) All firms that hire only bald barbers will go out of business.
C) Firms hiring bald barbers will enter the market, increasing the demand for bald barbers.
D) Firms hiring nonbald barbers will enter the market, increasing the demand for nonbald barbers.
Equilibrium Wage
The salary rate where the volume of labor provided is equal to the volume of labor needed.
Haircut Market
Refers to the market for hair styling and cutting services; often used to exemplify basic economic principles like supply, demand, and market equilibrium in a tangible context.
- Gain insight into how the biases of consumers affect outcomes in the market pertaining to discrimination.
- Assess the effects of discrimination on organizational performance and the behavior of markets.
Verified Answer
KW
Kelee Worsham6 days ago
Final Answer :
C
Explanation :
In a competitive market for haircuts, firms seek to minimize costs. Since bald barbers have a lower equilibrium wage, firms hiring them can offer competitive prices, encouraging more firms to enter the market and hire bald barbers, thus increasing the demand for bald barbers.
Learning Objectives
- Gain insight into how the biases of consumers affect outcomes in the market pertaining to discrimination.
- Assess the effects of discrimination on organizational performance and the behavior of markets.
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