All categories

4 years ago

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

Business

1 answer:

ehidna [41]4 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.

You might be interested in

Which security procedure is being demonstrated if an administrator is using Wireshark to watch for specific inbound and outbound

REY [17]

Answer:

The correct answer is firewall monitoring.

Explanation:

Only implementing the necessary security tools (Firewall and other security devices) in itself will not secure your network, since the security data of the tools should be analyzed and the security information extracted should be informed or alerted to ensure that the network is secure. Therefore, the analysis of Firewall logs and other logs of security devices is vital to network security.

Firewall logs provide a lot of information about security threats attempts at the periphery of the network and about the nature of incoming and outgoing traffic from the firewall. The analyzed firewall log information provides administrators with real-time data about security threats attempts so that they can quickly initiate a remediation action. It allows you to plan your bandwidth requirement based on its use in all firewalls. The analysis of firewall security logs plays an important role in the assessment of business risks. The analysis of firewall traffic logs is vital to understand the use of bandwidth and network. OpManager, in addition to monitoring the network, also analyzes firewall logs and offers many features that help in the collection, analysis and generation of reports about firewall logs.

5 0

3 years ago

The following labor standards have been established for a particular product: Standard labor-hours per unit of output 9.8 hours

Sloan [31]

Answer:

the labor efficiency variance for the month is $23,256 Favorable.

Explanation:

Labor efficiency variance = (Aq × SP) - (Sq × Sp)

= (7,600 × $13.60) - ((950 × 9.8) × $13.60)

= (7,600 × $13.60) - (9.310 × $13.60)

= $23,256 Favorable

4 0

4 years ago

Fiscal policy proponents see fiscal as a superior strategy for market corrections.

Arada [10]

Answer: True

Explanation:

Fiscal policy refers to the government suing taxation and spending policies to influence the economy of a country. If the government wants to improve production, they reduce taxes and increase spending and if they want to reduce production, they increase taxes and reduce spending.

Fiscal policy proponents believe that the government is right to use fiscal policy to correct the market because its effect is more direct. John Maynard Keynes was one of the most famous proponent for Fiscal policy.

6 0

3 years ago

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload

Mila [183]

Answer:

C) tender.

Explanation:

In contract law, a tender offer to perform is conditioned to the moment when the other party is willing and ready to perform as well. In this case, CrossCountry signed a contract, but the contract will be valid when the other party (Discount Outlet Stores) needs their services. If the other party does not require their services, CrossCountry is not able to perform nor demand performance.

6 0

3 years ago

When people make decisions together, they develop a ____ to each other and are therefore more committed to the outcome.

iren2701 [21]

Answer: Social commitment

Explanation: Social commitment is defined as the commitment or burden of the members of a society, whether they are members of a group or as individuals.

When there is a social commitment, people agree and reach a decision in order to fulfill what has been agreed. Regardless of the decisions that have been made as a group, once they are made it is important that they are followed and that everyone does their part.

5 0

3 years ago