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 86 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
Excellent

jojobee318

  • Member
  • Posts: 298
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

The highest suicide rate in the United States is among people ages 65 years and older. Almost 15% of people in this age group commit suicide every year.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

The flukes of a sperm whale as it dives into the Gulf of Mexico The flukes of a sperm whale as it dives into the Gulf of Mexico
The United States under the Articles of Confederation, 1787 The United States under the Articles of Confederation, 1787
Is the self the same as the brain? Materialists contend that in the final analysis, mental states ... Is the self the same as the brain? Materialists contend that in the final analysis, mental states ...
Associate’s degrees or vocational degrees can help individuals find rewarding and productive ... Associate’s degrees or vocational degrees can help individuals find rewarding and productive ...
One of the cultural privileges of being white in the United States is less suspicion of wrongdoing. One of the cultural privileges of being white in the United States is less suspicion of wrongdoing.
Daily Calorie Intake from Sugar Drinks, United States, 2005–2008 Daily Calorie Intake from Sugar Drinks, United States, 2005–2008
Video: Contraction and Relaxation Animation

For a complete list of videos, visit our video library