Asked by Tracy Winter on Jun 25, 2024
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Profit-maximizing, competitive firms will not discriminate in the hiring of workers unless consumers exercise a preference for discrimination in product markets or governments mandate discrimination.
Profit-maximizing
The process by which a firm determines the price and output level that returns the greatest profit, where marginal costs equal marginal revenues.
Discriminate
To differentiate or make distinctions between individuals or groups based on characteristics such as race, gender, age, or other criteria, often leading to unfair treatment.
Competitive Firms
Businesses that operate in a market where they must compete with other firms for customers, characterized by the inability to control market prices.
- Examine the economic analysis of discrimination in the labor market and its impact on wages and hiring practices.
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Learning Objectives
- Examine the economic analysis of discrimination in the labor market and its impact on wages and hiring practices.
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