Scenario 19-2 Assume That the Labour Market for Mechanics Is Competitive and Competitive

question 63

Multiple Choice

Scenario 19-2
Assume that the labour market for mechanics is competitive and that it is differentiated into two groups: male and female.Assume that the mechanics in this market have vehicle repair ability regardless of whether they are male or female.Currently, the equilibrium wage in the female market is lower than in the male market.Further assume that the market for vehicle repair is competitive.
-Refer to Scenario 19-2.If consumers do not discriminate between female mechanics and male mechanics,what will happen

• A)All mechanic shops will earn a normal economic profit.
• B)The difference in wages is able to be maintained since vehicle repair is not a homogeneous good.
• C)Mechanic shops that hire male mechanics will be more profitable than those that don't.
• D)Mechanic shops that hire female mechanics will be more profitable than those that don't.

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