If employers are profit maximizers,then what will result
A)Competition will eventually eliminate employment discrimination.
B)Employment discrimination may persist if consumers discriminate.
C)Employment discrimination will persist because it is generally profitable.
D)Compensating differentials will not exist.

Question

Quizplus · Accepted Answer

While employers are profit maximizers, they will choose to discriminate against certain groups only if it is profitable to do so. However, if the consumers themselves also discriminate (e.g. only wanting to buy products made by a certain group), then the employment discrimination may still persist even if it is not in the employer's best interest. Therefore, employment discrimination may persist if consumers discriminate.

If Employers Are Profit Maximizers,then What Will Result