A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

question 103

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Each firm in the market is earning zero economic profit. The owner of one firm decides to discriminate against employees of race X by not hiring them, or by firing those employees of race X who currently work for him. If employees of race X are high-quality employees, and other firms hire them, then the owner of the discriminating firm will soon find that his costs rise (above that of other firms) and he will begin earning

• A)below normal profits.
• B)normal profits.
• C)positive economic profits.
• D)losses.
• E)a and d

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Definitions:

Ethmoid Bone

A sponge-like bone located at the roof of the nasal cavity and forming part of the orbits of the eyes.

Nasal Bone

A pair of small, oblong bones that form the bridge of the nose, providing structure and support to the nasal cavity.

Atlas

The first cervical vertebra of the spine, supporting the skull and enabling head movements like nodding.

Thoracic Vertebrae

The twelve vertebrae located in the middle section of the vertebral column, corresponding to the chest area.