If employers are profit-maximizers, then
A)competition will always eventually eliminate employment discrimination.
B)employment discrimination may persist if consumers discriminate.
C)employment discrimination will persist because it is always profitable.
D)compensating differentials cannot exist.

Question

Quizplus · Accepted Answer

Employers may discriminate if it is profitable for them to do so, but discrimination may also persist if consumers exhibit discrimination in their own choices. For example, if consumers prefer to purchase from businesses that discriminate, then employers may continue to discriminate in order to attract those consumers.

If Employers Are Profit-Maximizers, Then