There are one hundred supervising jobs and one hundred male supervisors in a competitive job market.In addition,each supervisor supervises one line worker.There are one hundred line jobs and one hundred line workers.The supervisor of job one dislikes supervising female line workers by $1 a week.The supervisor of job two dislikes female line workers by $2 a week,and so forth,such that the supervisor of job hundred dislikes supervising female line workers by $100 a week.There are 60 female and 40 male line workers.Supervisors of male line workers are paid $400 a week and male line workers are paid $200 a week.Which of the following is NOT true in the short-run equilibrium?

Question

Quizplus · Accepted Answer

In the given scenario, the employers of male line workers would not increase profits by hiring females instead because the cost of the disutility to the supervisors (ranging from $1 to $100 a week) would offset or exceed the wage difference. The equilibrium accounts for these preferences, meaning that the market has already adjusted for the supervisors' disutility from supervising female workers, making it not profitable to switch to hiring female workers for those positions.

There Are One Hundred Supervising Jobs and One Hundred Male