There are one hundred jobs and one hundred workers in a competitive job market.

Question

There are one hundred jobs and one hundred workers in a competitive job market. All the workers are equally productive. All employers dislike female workers but vary by the degree of their dislike. Job one's employer dislikes females by $100 a week. Assume male workers are paid $500 a week. If there are 40 females and 60 males in the labor force, then which of the following is true in the short run equilibrium? A)employer 40 will pay a wage of $440 and hire a female B)employer 10 will pay a wage of $440 and hire a female C)employers of males could increase their monetary profit by hiring females instead D)All of the above are true

Explanation / Answer

Given that all the workers are equally productive it is profitable for the employer to hire female workers at a lower wage rate them males.

Thus a)is true in short run equilibrium.

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