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

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Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Choices

The act of selecting among alternatives or the options available in a decision-making process.

Alternatives

Other options or choices available to decision-makers apart from the one currently under consideration.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.