There are 15 barbershops in a specific geographic region that all compete for clients and employees. Most of these businesses periodically conduct salary surveys. Most businesses want to be market leaders on pay, thinking that they can attract and retain staff if they pay more than the competitor. What is the likely impact on rates of pay for local barbers in the region? Discriminatory practices may dominate the industry. Stereotyping will occur. Pay rates will decrease over time. Pay rates will increase over time.

There are 15 barbershops in a specific geographic region that all compete for clients and employees. Most of these businesses periodically conduct salary surveys. Most businesses want to be market leaders on pay, thinking that they can attract and retain staff if they pay more than the competitor. What is the likely impact on rates of pay for local barbers in the region? Discriminatory practices may dominate the industry. Stereotyping will occur. Pay rates will decrease over time. Pay rates will increase over time.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 8SQ

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