Suppose Firm A and Firm B sell their output in the same output market, purchase inputs in the same input markets and use the same production technology. The only difference between the two firms is that Firm A hires only women and Firm B hires only men. That is: WF(1+ dA) < WM and WF(1+ dB)>WM* Which firm will earn a higher profit? A. Firm A will earn a higher profit. B. Firm B will earn a higher profit. C. Both firms will earn the same profit. D. Their relative profit cannot be determined.
Suppose Firm A and Firm B sell their output in the same output market, purchase inputs in the same input markets and use the same production technology. The only difference between the two firms is that Firm A hires only women and Firm B hires only men. That is: WF(1+ dA) < WM and WF(1+ dB)>WM* Which firm will earn a higher profit? A. Firm A will earn a higher profit. B. Firm B will earn a higher profit. C. Both firms will earn the same profit. D. Their relative profit cannot be determined.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter25: The Supply Of And Demand For Productive Resources
Section: Chapter Questions
Problem 9CQ
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Suppose Firm A and Firm B sell their output in the same output market, purchase inputs in the same
input markets and use the same production technology. The only difference between the two firms is
that Firm A hires only women and Firm B hires only men. That is:
WF(1+ dA) < WM and WF(1+ dB)>WM*
Which firm will earn a higher profit?
A. Firm A will earn a higher profit.
B. Firm B will earn a higher profit.
C. Both firms will earn the same profit.
D. Their relative profit cannot be determined.
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