Firms that operate in competitive product markets and choose to practice discrimination in hiring workers
A)will survive if they increase production and garner a larger market share.
B)will eventually earn zero economic profits.
C)will survive as long as they are willing to have a smaller market share.
D)are likely to eventually go out of business.

Question

Quizplus · Accepted Answer

Firms that practice discrimination in hiring workers will eventually go out of business because they are not fully utilizing the available talent pool and may end up with less productive workers. Moreover, discrimination could lead to legal and reputational costs, which can be costly for the firm in the long run. Thus, they are likely to lose out in a competitive market where efficiency and profitability are key to survival.

Firms That Operate in Competitive Product Markets and Choose to Practice