Which of the Following Statements Is Not Correct

question 21

Multiple Choice

Which of the following statements is not correct?

• A)If a firm discriminates by paying short workers less than tall workers, the firm may be able to compete in the market if the firm's customers also prefer taller workers to shorter workers.
• B)If the government passes regulations that prevent shorter workers from working in higher paying jobs, taller workers may continue to earn higher wages than shorter workers.
• C)Government regulation that prohibits discrimination is economically necessary because market forces support discrimination.
• D)Competitive markets will eliminate discrimination in wages over time unless customer preferences also reflect discrimination and/or government intervention promotes discrimination.

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Definitions:

Target Net Income

The income objective set by management.

Required Sales

The amount of sales a company needs to achieve in order to cover all its costs and reach its break-even point.

Variable

An element or factor that is subject to change or variation, often used in financial analysis or scientific experiments.

Fixed

Refers to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.