If a Firm Is in a Competitive Product Market but Practices

question 102

Multiple Choice

If a firm is in a competitive product market but practices discrimination when hiring workers, then it:

• A)will survive, if it increases production and captures a larger market share
• B)will eventually earn zero economic profits
• C)will be less profitable than firms that don't discriminate and may not survive
• D)will survive as long as it is willing to have a smaller market share

---

Definitions:

Accounts Payable Subsidiary Ledger

A detailed record used to track amounts owed to suppliers or creditors separate from the general ledger.

General Ledger

A comprehensive ledger that contains all the financial accounts of a business, recording every transaction that occurs.

Accounts Receivable Subsidiary Ledger

A detailed ledger that tracks individual transactions with customers, supporting the summary balances shown in the main accounts receivable account.

Accounts Payable

Accounts payable refers to the amounts owed by a company to its creditors for goods or services received that have not yet been paid for.