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 75 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
Gracias!

raili21

  • Member
  • Posts: 324
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Adrian Smith, Skidmore, Owings & Merrill, Burj Khalifa, Dubai, United Arab Emirates. Adrian Smith, Skidmore, Owings & Merrill, Burj Khalifa, Dubai, United Arab Emirates.
Tom Wills-Wright, Burj Al-Arab, Dubai, United Arab Emirates. Tom Wills-Wright, Burj Al-Arab, Dubai, United Arab Emirates.
Areas of the United States, Mexico, and Cuba will be affected by a rise of just 100 cm Areas of the United States, Mexico, and Cuba will be affected by a rise of just 100 cm
Major Agricultural Crops Produced in the United States, 2011 Major Agricultural Crops Produced in the United States, 2011
Percent of Selected Foods and Beverages Consumed in the United States Percent of Selected Foods and Beverages Consumed in the United States
Applying the bill of rights to the states Applying the bill of rights to the states
Video: Pneumonia Animation

For a complete list of videos, visit our video library