This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If barbers in Mexico are just a productive as their counterparts in the United States then why do ... (Read 69 times)

lb_gilbert

  • Hero Member
  • *****
  • Posts: 588
on: Jun 29, 2018
If barbers in Mexico are just a productive as their counterparts in the United States then why do they earn lower wages?
 
  What will be an ideal response?

Question 2

Refer to Figure 6-1. The demand curve on which elasticity changes at every point is given in
 
  A) Panel A. B) Panel B.
  C) Panel C. D) none of the above graphs.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Koolkid240

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 29, 2018
Answer to Question 1

The reason is that productivity alone does not determine earnings. Productivity times the price that consumers are willing to pay does. This is what is referred to as the marginal revenue product. In Mexico the ability and willingness to pay for a haircut is lower than it is in the United States. That translates into a lower marginal revenue product and lower wages as well.

Answer to Question 2

C


lb_gilbert

  • Member
  • Posts: 588
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

AmberC1996

  • Member
  • Posts: 317
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Municipal Solid Waste (MSW) Generation in the United States Municipal Solid Waste (MSW) Generation in the United States
María and Julián Martinez, Jar, San Ildefonso Pueblo, New Mexico. María and Julián Martinez, Jar, San Ildefonso Pueblo, New Mexico.
Common STIs in the United States Common STIs in the United States
Food Assistance Programs in the United States Food Assistance Programs in the United States
Daily Calorie Intake from Sugar Drinks, United States, 2005–2008 Daily Calorie Intake from Sugar Drinks, United States, 2005–2008
Income Distribution in the United States, 2009 Income Distribution in the United States, 2009
Video: Exercise and cardiac output

For a complete list of videos, visit our video library