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Flauer [41]
3 years ago
13

Assume that the labor market for barbers is competitive and that it is differentiated into two groups:

Business
1 answer:
ehidna [41]3 years ago
4 0

Answer and Explanation:

I will go through each and every option explaining the reasons and what option would be the best:

The (a) part says 'difference in wages will eventually disappear since a haircut is a homogeneous good' - This is not true because even though it is an homogeneous product, some customers do have a strong preference for barbers who are not going bald. Therefore, they know their worth and they would want to capitalize on that and get paid just a bit more than bald barbers.

The (b) part says 'barbershops that hire barbers with hair will be able to charge a higher price for a haircut to those consumers who have a strong preference for barbers with hair'. - If the barbershop charges higher price for barbers that have hair then the customers will prefer bald barbers as the questions mentions that there is high competition and since it is an homogeneous, customers would be willing to save money and get their haircut from some other barber.

The (c) part says 'barbershops that hire bald barbers will always be much more profitable' - Not necessarily. The reason is that some customers have a strong preference for barbers who are not bald and therefore, that would help barbershops who have barbers with hair to be a bit more profitable as some additional customers would want their services.

The (d) part says 'barbershops that hire barbers with hair will always be much more profitable' - This is the best option and the reason for it is because some customers have a strong preference for barbers with hair and that would help the barbershop to earn more. They would have the customers who already indifferent to whoever cuts their hair and in addition to that, they would also have the customers who have their preference.

Hence the answer is D.

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Suppose our firm produces chartered business flights with capital​ (planes) and labor​ (pilots) in fixed proportion​ (i.e., one
GREYUIT [131]

Answer:

A. follow the​ 45-degree line from the origin

Explanation:

In order to diversify the business that means the output level should be increased we need to rise the input i.e. no of planes and pilots

Now if we increase the no of planes by 1 so here the no of pilots should also be increased by 1 units

So the expansion path equation is y = x

Therefore the option a is correct

5 0
3 years ago
On May 3, 2017, Leven Corp. negotiated a short-term loan of $685,000. The loan is due October 1, 2017, and carries a 6.86% inter
Semmy [17]

Answer:

704076 $

Explanation:

Exact statement of the question is:

<em>May 3, 2007, Leven Corp. negotiated a short-term loan of $685,000. The loan is due October 1, 2007, and carries a 6.86% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)</em>

Solution:

Fro 3rd May to October 1st. 2017 there are 151 days

But 365 days = 1 year

==> 151 days = 151× 1/365 =0.414 years

But we use 1 year as one term

==> 1year = 1T

==>  T = 0.414

R= 6.86

P= 685000

A=?

We use formula for the term:

A= P(1+ \frac{R}{100} )^{T}

Where A= ammount at the end of term

P= Loan amount

R= Rate of interest

T= No. of terms

Putting values in this formula;

==> A= 685000×(1+\frac{6.86}{100}) ^{0.414}

==> A= 685000 × 1.02784938489=704076 $

6 0
3 years ago
Which of the following statements is false?
GenaCL600 [577]

Answer: Actual overhead costs always enter the Work-in-Process account.

Explanation:

The work-in-process account is an account where the value of goods yet to be completely produced are recorded while the overhead cost is simply a business running cost, that is cost on expenses the business makes to keep functioning.

Overhead cost is not recorded in work-in-process account, rather it is recorded as business expenses.

6 0
3 years ago
A manager has a habit of consistently giving her employees high ratings to avoid conflict with them. Which error related to use
SpyIntel [72]

Answer:

C. Leniency Error

Explanation:

It is the tendency to give favorable ratings that are generally more lenient than true performance. In this case the manager does this to avoid conflict.

3 0
3 years ago
Zoom Enterprises expects that one year from now it will pay a total dividend of $4.7 million and repurchase $4.7 million worth o
Ira Lisetskai [31]

Answer:

$13.34

Explanation:

For computing the today price, first we have to determine the present value of equity which is shown below:

The Present value of equity = Spending amount on dividends and repurchases ÷ equity cost of capital

= $9.4 million ÷ 13.3%

= $70,676,691

Now the share price equals to

= Present value of equity ÷ outstanding shares

= $70,676,691 ÷ 5.3 million shares

= $13.34

6 0
3 years ago
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