BA 372 Lesson 9 Assignment 3

BA 372 Lesson 9 Assignment 3 - at lower costs. The average...

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Ashley B. Hilliard 258-10-0169 July 5, 2010-October 22, 2010 BA 372 Lesson#9, Assignment 3 1. What difficulties arise in deciding whether a group of workers has a lower wage because of discrimination? Because there are other attributes of workers. Such as wage differences between blacks and whites, the young and the old. Most commonly is the gender difference. But often backed by different levels of their education. 2. When recording devices were first invented almost 100 years ago, musicians could suddenly supply their music to large audiences at low cost. How do you suppose this development affected the income of the best musicians? How do you suppose it affected the income of average musicians? According to the theory of economic superstar, the top musicians of the industry incomes will increase due to popularity, the income of the general musicians income will decrease or stay the same due to them not being know as well in the industry. With the invention of the recording device it made it easier for the less known musicians to distribute their music to larger audiences
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Unformatted text preview: at lower costs. The average musician has the ability to make more money if they become more popular. 3. Chapter 19 considers the economics of discrimination by employers, customers, and governments. Now consider discrimination by workers. Suppose that some brunette workers did not like working with blonde workers. Do you think this worker discrimination could explain lower wages for blonde workers? If such a wage differential existed, what would a profit-maximizing entrepreneur do? If there were many such entrepreneurs, what would happen over time? If people do not want brown hair with golden hair of people working together, the marginal product of blond people tend to be lower. In this way, enterprises tend to reduce wages blond. All the profit maximizing companies can hire workers blonde, avoid the friction. If there are many companies specialized employment blond or brunette, the wage gap will disappear....
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This note was uploaded on 02/22/2011 for the course ECON BA 372 taught by Professor Dickliter during the Summer '10 term at Andrew Jackson.

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