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with more work opportunities. 3)If more employers do like this, the wage differential between men and women will narrow because the demand for women economists increases, which leads to a rise in their wage. 4)The reasonwhy other economic consulting firms have not followed this business strategy is might because their customers prefer men economics and are willing to pay more for their choice.
#3.Yes, his behavior is profit maximizing. He is hiring labor at a lower cost. You might claim that Alan is despicable because he is discriminating against men. Some might claim that Alan was admirable, though, because he is maximizing profit and giving women a better opportunity to find a job. If more employers were like Alan, the wage differential between men and women would shrink, as employers would be competing for women workers, so women would have as many job options as men. Ultimately, the wage differential could disappear. Other firms at the time may not have followed his strategy because their customers may have preferred male consultants.#4. Suppose that all young women were channeled into careers as secretaries, nurses, and teachers, at the same time, young men were encouraged to consider these three careers and many others as well.a. Draw a diagram showing the combined labor market for secretaries, nurses, and teachers. Draw a diagram showing the combined labor market for all other fields. In which market is the wage higher? Do men or women receive higher wages on average?b. Now suppose that society changed and encouraged both young women and young men to consider a wide range of careers. Over time, what effect would this change have on the wages in the two markets you illustrated in part (a)? What effect would the change have on the average wages of men and women?