Employers may be able to discriminate on the basis of race or gender because:
A)market competition makes it profitable to engage in discrimination.
B)of the existence of higher than equilibrium wages due to market interference or market failure.
C)it is justified by the marginal productivity theory of income
D)distribution.it is justified by the structure of competitive markets.

Question

Quizplus · Accepted Answer

Higher than equilibrium wages due to market interference or market failure can lead to discrimination by employers who seek to minimize costs and maximize profits. For example, if government regulations or labor unions have created minimum wage laws or other barriers to entry into the labor market, employers may engage in discrimination in order to avoid paying these higher wages. This does not mean that discrimination is morally or socially acceptable, but rather that it can occur in certain market conditions. Options A, C, and D are not accurate justifications for discrimination as they do not take into account the negative social and economic consequences of such behavior.

Employers May Be Able to Discriminate on the Basis of Race