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Scenario 19-5 Billy Works for the Local Piano Moving Company Part-Time After

Question 273

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Scenario 19-5
Billy works for the local piano moving company part-time after school. Billy has worked for the company for two years but still hasn't received a wage increase, even though newer employees have received raises. Billy has threatened his employer with a lawsuit if he doesn't get a raise in the next few weeks. Billy believes he is a victim of labor-market discrimination.
-Refer to Scenario 19-5.Why might an economist be skeptical of Billy's discrimination complaint?


A) Through antitrust laws, discriminating firms can be penalized with large fees.
B) In a competitive market, employers pay employees based on their value to the firm.
C) Discrimination leads to profit maximization.
D) Only cost minimizers practice discrimination.

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