What will happen to firms that operate in competitive product markets and choose to practice discrimination in hiring workers
A)They will survive, if they increase production and garner a larger market share.
B)They will eventually earn zero economic profits.
C)They will survive, as long as they are willing to have a smaller market share.
D)They are likely to eventually go out of business.

Question

Quizplus · Accepted Answer

Discrimination in hiring workers can lead to a decrease in productivity and various costs, such as legal costs and boycotts from consumers. As a result, firms that practice discrimination are likely to experience a decline in sales and profitability, eventually leading to going out of business.

What Will Happen to Firms That Operate in Competitive Product