Because of the owner's prejudice, a firm chooses to discriminate against hiring Oriental workers.Compared to an otherwise identical nondiscriminating firm hiring in the same competitive market, the discriminating firm will have

Question

Quizplus · Accepted Answer

The discriminating firm will have higher costs as it may have to reject some qualified candidates and hire less qualified individuals solely based on their race. This will result in a lower quantity of labor supplied at every wage and ultimately lead to lower profits for the firm. Therefore, all three options are correct.

Because of the Owner's Prejudice, a Firm Chooses to Discriminate