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This question is in the context of the Becker model. Suppose Firm A and Firm B sell their output in the same output market, purchase

This question is in the context of the Becker model. Suppose Firm A and Firm B sell their output in the same output market, purchase inputs in the same input markets and use the same production technology. The only difference between the two firms is that Firm A hires only women and Firm B hires only men. That is: W_F(1 + d_A) < W_M and W_F(1 + d_B) > W_M. Which firm will earn a higher profit?

  • Both firms earn the same profit.
  • Firm A
  • Their relative profit cannot be determined.
  • Firm B

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