Discrimination on the basis of characteristics that have nothing to do with one's job performance is ____ in a market in which entry is ____.

Question

Quizplus · Accepted Answer

If discrimination is costly, it means that the firm is losing out on potential talent and productivity by not hiring the best qualified individuals for the job. Therefore, it is likely that the discrimination is not based on job performance, but on irrelevant characteristics such as race or gender. Additionally, if entry into the market is easy, it is likely that there are many potential job candidates from which to choose, so discriminating on irrelevant characteristics is even more costly as it limits the pool of potential talent.

Discrimination on the Basis of Characteristics That Have Nothing to Do