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Owners of Men's Clothing Stores Traditionally Discriminate Against Males When

Question 5

Multiple Choice

Owners of men's clothing stores traditionally discriminate against males when making hiring decisions because they believe that male customers are more eager to buy clothing from female associates. In reality, however, one's sex does not affect one's sales (i.e., one's sex does not affect one's productivity) . Discrimination of this sort throughout the labor market has resulted in clothing stores paying male associates lower wages than they pay female associates. A new men's clothing store enters the industry without these prejudicial beliefs. Which of the following outcomes is not likely to come about?


A) The new store will hire more male associates than the typical existing store.
B) The new store will make greater profit than it would if it would hold similarly biased views.
C) The new store will have lower per-employee labor costs than existing stores.
D) The new store will likely have lower prices than existing stores.
E) The new store will have to hire female associates to compete with its competition.

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