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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.
- Summer '10