Use the following to answer question(s): Discrimination

-Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets.Then, according to the text, competition among profit-maximizing firms:
A) would not eliminate racism or sexism on the part of employers from the market.
B) would eliminate sexism but not racism on the part of employers from the market.
C) would eliminate both racism and sexism on the part of employers from the market.
D) has nothing to do with discrimination.

Question

Use the following to answer question(s): Discrimination
 
-Suppose that racism and sexism don't exist on the customer side of perfectly competitive markets.Then, according to the text, competition among profit-maximizing firms:
A) would not eliminate racism or sexism on the part of employers from the market. 
B) would eliminate sexism but not racism on the part of employers from the market. 
C) would eliminate both racism and sexism on the part of employers from the market. 
D) has nothing to do with discrimination.

Quizplus · Accepted Answer

In a perfectly competitive market, firms are profit-maximizing and face competition from other firms. If racism and sexism do not exist on the customer side, firms that engage in discriminatory hiring practices would incur higher costs by not hiring the best or most cost-effective employees. Over time, competition would pressure these firms to eliminate discriminatory practices to lower costs and remain competitive, leading to the elimination of both racism and sexism on the part of employers.

Use the Following to Answer Question(s): Discrimination