Profit-Maximising Competitive Firms Cannot Discriminate in the Hiring of Workers

question 78

True/False

Profit-maximising competitive firms cannot discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets.

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Definitions:

Taxpayer

An individual or entity legally obligated to pay taxes to a governmental authority, such as the IRS.

Section 1231

A tax provision that allows for the favorable tax treatment of gains on the sale or exchange of certain types of property used in a business.

Trade or Business

An activity carried out for the purpose of earning income or profit, involving regularity and continuity in operations.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.