Microeconomics, Student Value Edition (6th Edition)
6th Edition
ISBN: 9780134125756
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 17, Problem 17.4.2RQ
To determine
Economic discrimination.
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does a gap between the average earning of between of men and women, or between whites and black, prove that employers are discriminating in the labor market? Explain briefly.
In this context also examine the following: In 2007 the president of the University of the Southern of California was paid $900,000 and the football coah was paid $ 4 million. Dos it makes any sense?
Discrimination in the labour market
The following table lists the name, height, and minimum wage 10 people are willing to accept to work as sales clerks at a high-end clothing store.
Name
Height
Minimum Wage
(Centimetres)
(Dollars per week)
Eileen
170
$301
Amy
167
$325
Deborah
170
$349
Van
181
$362
Carlos
179
$386
Janet
168
$410
Felix
175
$423
Raphael
176
$447
Larry
168
$460
Megan
176
$484
The lowest wage that the clothing store can pay to hire five sales clerks is $ per week.
Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 172 centimetres in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by $ per week.
Chapter 17 Solutions
Microeconomics, Student Value Edition (6th Edition)
Ch. 17 - Prob. 17.1.1RQCh. 17 - Prob. 17.1.2RQCh. 17 - Prob. 17.1.3RQCh. 17 - Prob. 17.1.4RQCh. 17 - Prob. 17.1.5PACh. 17 - Prob. 17.1.6PACh. 17 - Prob. 17.1.7PACh. 17 - Prob. 17.1.8PACh. 17 - Prob. 17.1.9PACh. 17 - Prob. 17.2.1RQ
Ch. 17 - Prob. 17.2.2RQCh. 17 - Prob. 17.2.3PACh. 17 - Prob. 17.2.4PACh. 17 - Prob. 17.2.5PACh. 17 - Prob. 17.2.6PACh. 17 - Prob. 17.2.7PACh. 17 - Prob. 17.2.8PACh. 17 - Prob. 17.3.1RQCh. 17 - Prob. 17.3.2RQCh. 17 - Prob. 17.3.3PACh. 17 - Prob. 17.3.4PACh. 17 - Prob. 17.3.5PACh. 17 - Prob. 17.3.6PACh. 17 - Prob. 17.3.7PACh. 17 - Prob. 17.3.8PACh. 17 - Prob. 17.4.1RQCh. 17 - Prob. 17.4.2RQCh. 17 - Prob. 17.4.3RQCh. 17 - Prob. 17.4.4RQCh. 17 - Prob. 17.4.5PACh. 17 - Prob. 17.4.6PACh. 17 - Prob. 17.4.7PACh. 17 - Prob. 17.4.8PACh. 17 - Prob. 17.4.9PACh. 17 - Prob. 17.4.10PACh. 17 - Prob. 17.4.11PACh. 17 - Prob. 17.4.12PACh. 17 - Prob. 17.4.13PACh. 17 - Prob. 17.4.14PACh. 17 - Prob. 17.4.15PACh. 17 - Prob. 17.4.16PACh. 17 - Prob. 17.4.17PACh. 17 - Prob. 17.4.18PACh. 17 - Prob. 17.4.19PACh. 17 - Prob. 17.4.20PACh. 17 - Prob. 17.4.21PACh. 17 - Prob. 17.5.1RQCh. 17 - Prob. 17.5.2RQCh. 17 - Prob. 17.5.3RQCh. 17 - Prob. 17.5.4PACh. 17 - Prob. 17.5.5PACh. 17 - Prob. 17.5.6PACh. 17 - Prob. 17.5.7PACh. 17 - Prob. 17.5.8PACh. 17 - Prob. 17.6.1RQCh. 17 - Prob. 17.6.2RQCh. 17 - Prob. 17.6.3RQCh. 17 - Prob. 17.6.4PACh. 17 - Prob. 17.6.5PACh. 17 - Prob. 17.6.6PACh. 17 - The total amount of oil in the earth is not...Ch. 17 - Prob. 17.6.8PA
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- I Collado Lumber Company is producing tons of lumber per day. The following table is the costs of production. The managers currently have six machines. The price of output is $5 per unit. The wage of the worker is $55 per worker. From economic theory, we know that the value of the marginal product is price times the marginal product of labor. According to economic theory, a worker should be hired if the value of the marginal product is greater than the marginal cost of hiring a worker. See the table below. Number of machines Number of workers Output The marginal product of labor VMP Wage Marginal cost of hiring an additional worker 6 0 0 xxx xxx $55.00 xxx 6 1 2 2 $10.00 $55.00 $55.00 6 2 14 12 $60.00 $55.00 $55.00 6 3 30 16 $80.00 $55.00 $55.00 6 4 42 12 $60.00 $55.00 $55.00 6 5 50 8 $40.00 $55.00 $55.00 6 6 56 6 $30.00 $55.00 $55.00 6…arrow_forwardThe Zippy Paper Company has no control over either the price of paper or the wage it pays itsworkers. The following table shows the relationship between the number of workers Zippy hiresand total output: Assuming the selling price is $10 per box, answer the following questions:a. What is the marginal revenue product (MRP) of each worker?b. How many workers will Zippy hire if the wage rate is $100 per day?c. How many workers will Zippy hire if the wage rate is $75 per day?d. Assume the wage rate is $75 per day and the price of a box of paper is $20. How manyworkers will Zippy hire?arrow_forwardDiscrimination in the labour market I cant solve the second blank, need to know how to solve The following table lists the name, height, and minimum wage 10 people are willing to accept to work as swimming instructors at an exclusive fitness club. Name Height Minimum Wage (Centimetres) (Dollars per week) Eleanor 177 $306 Juanita 163 $321 Neha 169 $346 Gilberto 179 $360 Lorenzo 175 $380 Teresa 164 $402 Sam 181 $426 Darnell 177 $442 Andrew 162 $466 Beth 173 $482 The lowest wage that the fitness club can pay to hire five swimming instructors is per week. Suppose the head of the fitness club has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all swimming instructors hired must be at least 173 centimeters in height. Under this new regulation, the wage rate the fitness club must pay to attract five swimming instructors rises by $ per week.arrow_forward
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