If Firms Are Competitive,under What Circumstances Will Labour-Market Discrimination Exist

question 6

Multiple Choice

If firms are competitive,under what circumstances will labour-market discrimination exist in the long run

• A)It is likely to be nonexistent in the long run since any firms with discriminatory preferences will be driven out of the market.
• B)It is likely to be nonexistent in the long run since workers who receive a wage less than their marginal product will leave the labour market.
• C)It is likely not to be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies.
• D)It is likely to be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.

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Definitions:

Small Claims Court

A legal venue that handles minor civil disputes and claims typically involving small sums of money, offering a quicker and less complicated process than higher courts.

Duress

Coercion or pressure exerted upon someone to compel that person to act in a way they would not ordinarily act.

Unduly Influenced

A legal term referring to a situation where an individual is persuaded or coerced into acting against their free will or best interest, often in contracts or wills.

Tax Evasion

The illegal act of not paying taxes that are legally owed, often by concealing income or inflating deductions.