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:

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effects on the dependent variable.

Interaction Effect

A statistical phenomenon where the effect of one independent variable on a dependent variable varies depending on the level of another independent variable.

Random Sample

A subset of a population selected through a method where every individual has an equal chance of being chosen, ensuring the representativeness of the sample.

Target Population

The entire group of individuals or instances about whom the research is focused and to whom the researcher wishes to generalize the study findings.