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:

Paid-In Capital

The complete sum of money and various assets that investors have provided to a corporation in return for its shares.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned by each shareholder.

Authorized Shares

The maximum number of shares that a corporation is legally permitted to issue, as specified in its charter.

Common Stock

Equity shares issued by a corporation representing ownership rights, including voting privileges and a share in corporate profits.