In the presence of discrimination by customers,
A)market forces nevertheless always work to prevent discriminatory wage differentials.
B)discriminatory wage differentials can exist, but only if firms refrain from maximizing their profits.
C)discriminatory wage differentials can exist, but only if government reinforces customers' practices by passing laws that mandate discrimination.
D)discriminatory wage differentials can exist, even in the absence of discriminatory practices by firms or by government.

Question

Quizplus · Accepted Answer

Discriminatory wage differentials can persist due to customer discrimination, even if firms and governments do not engage in discriminatory practices themselves. This occurs because businesses may cater to the biases of their customers to maintain sales, leading to wage disparities.

In the Presence of Discrimination by Customers