Consider a Color-Blind Firm That Is Currently Maximizing Profits

Consider a color-blind firm that is currently maximizing profits. An affirmative action policy is put in place requiring that all firms in the industry abide by a certain quota. Which of the following will occur?

A) The firm will have to start hiring some workers that it would prefer not to.
B) If the quota is already met, the firm will make no changes in its hiring practices.
C) If the firm currently meets the required quota, it will cut costs by adjusting labor to exactly meet the affirmative action requirements.
D) If the firm currently meets the quota, it will begin to lose profits due to the affirmative action requirements.
E) The firm will have to fire some workers.