Why Would a Wage Differential Due to Discrimination Be Unlikely

question 232

Multiple Choice

Why would a wage differential due to discrimination be unlikely to persist in a competitive labor market?

• A) There is a cost advantage for firms that do not discriminate.
• B) Workers who are victims of discrimination will eventually drop out of the labor market.
• C) Competing firms will hire fewer of the workers who are temporarily victimized by discrimination.
• D) Discrimination cannot exist in markets.

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