An implication of the taste-for-discrimination model is that

Question

Quizplus · Accepted Answer

The taste-for-discrimination model suggests that discriminating firms will allocate resources inefficiently based on their preferences for hiring a certain group, rather than based on their productivity. This can lead to higher production costs compared to nondiscriminating firms who hire based on productivity and qualifications rather than personal preferences. Therefore, other things being equal, discriminating firms will have higher production costs than nondiscriminating firms, and choice C is the correct answer. Choices A and B are incorrect because the model does not suggest that discrimination lowers production costs, but rather inefficiently allocates resources. Choice D is incorrect because the model suggests that discriminating firms will have higher production costs, not lower.

An Implication of the Taste-For-Discrimination Model Is That