Which of the Following Is a Form of Statistical Discrimination

question 73

Multiple Choice

Which of the following is a form of statistical discrimination?

• A)Young people are charged higher automobile insurance rates due to the higher probability of an accident.
• B)Restaurants prefer to hire women than men as servers.
• C)Women prefer to see a female doctor than a male doctor.
• D)Women are more likely than men to pay too much money for a new automobile because salespeople bargain more with men than with women.
• E)Female physicians earn 20 percent less than male physicians,on average.

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Definitions:

Diminishing Marginal Returns

A principle stating that if one factor of production is increased while others are kept constant, the resulting increase in output will eventually decline.

Short-Run Average Total Cost (ATC)

The total cost per unit of output in the short run, where some factors of production are fixed.

Profit-Maximizing Level

The output level at which a firm achieves the highest profit, where marginal revenue equals marginal cost.

Average Total Costs (ATC)

A rephrasing of Average Total Cost, it calculates the per-unit production cost by dividing the total cost by the total quantity of goods produced.