If Firms Are Competitive, Then Labor-Market Discrimination

question 33

Multiple Choice

If firms are competitive, then labor-market discrimination

• A)cannot exist in either the short run or the long run.
• B)will be more of a problem than if the market were monopolistic or imperfectly competitive.
• C)likely will not be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies.
• D)likely will be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.

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Definitions:

Discarding

The process of getting rid of something no longer useful or required, often in the context of inventory or asset management.

Revenue Expenditures

Costs that are expensed in the current period and not capitalized; they are for maintaining the earning capacity of existing assets rather than for new assets.

Income Statement Expenditures

These are expenses reported on the income statement, including costs associated with the operations of a business, such as cost of goods sold, administrative expenses, and interest on debt.

Plant Assets

Long-term tangible assets used in the operation of a business that are subject to depreciation.