In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?
Correct answer: D. the employer
- A. All of these answers could be source of a persistent discriminatory wage differential
- B. the customer
- C. the government
- D. the employer
Explanation
In a competitive market, employer discrimination is least likely to persist because firms that refuse equally productive workers would face higher costs and lose profits. Customer preferences or government rules can sustain wage differences even when employers compete.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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