What Is the Primary Source of an Individual's Taste for Discrimination

question 59

Multiple Choice

What is the primary source of an individual's taste for discrimination?

• A)Monopoly power
• B)The law of diminishing returns
• C)Personal prejudice
• D)Market imperfections
• E)None of the above

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar, ensuring no single entity can control prices.

Profits

The financial gain achieved when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in operating the business.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Economic Profits

The excess of total revenue over total costs, including both explicit and implicit costs, reflecting the financial gain in terms of opportunity costs.