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Economic Theory Suggests That Discriminating Employers Will Be Driven from the Marketplace

Question 14

Multiple Choice

Economic theory suggests that discriminating employers will be driven from the marketplace when the output market is competitive. Why?


A) Customers will refuse to purchase from a discriminating employer.
B) Workers will refuse to work for a discriminating employer.
C) The government mandates that the employer not act on his or her desire to discriminate.
D) Discrimination imposes an additional cost on the employer, and high-cost firms are eventually driven out of a competitive output market.
E) A competitive output market requires all workers to be paid the same wage.

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