In the Presence of Discrimination by Customers

question 185

Multiple Choice

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.

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Definitions:

Power Cords

Electrical cables that deliver power from an outlet or source to an electronic device or appliance.

Market Wage Rate

The prevailing rate of pay for work in a particular labor market or industry.

Profit-Maximizing Quantity

The level of output at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.

Market Wage Rate

The prevailing rate of pay for specific labor in a particular market, influenced by factors like skill level, industry demand, and availability of workers.