One implication of Becker's "taste-for-discrimination" model is that:

Question

Quizplus · Accepted Answer

Becker's "taste for discrimination" model suggests that firms that discriminate will have higher costs and, therefore, will be at a disadvantage in a competitive market. This implies that competitive market forces will cause discrimination to diminish and eventually disappear. Thus, option B is the correct answer. Option A is incorrect because discriminating firms have higher costs. Option C is incorrect because an increase in the supply of African American workers will lead to a decrease in the African American-white wage ratio. Option D is incorrect because non-discriminating firms will not be at a competitive disadvantage because they employ victims of discrimination.

One Implication of Becker's "Taste-For-Discrimination" Model Is That