Because of the owner's prejudice, a firm chooses to discriminate against hiring Asian workers. Compared to an otherwise identical, nondiscriminating firm in the same competitive market, the discriminating firm will:
a. incur higher costs
b. receive lower profits.
c. receive higher profits.
d. be characterized by both (a) and (b).
d
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If average labor productivity in two countries is the same, average living standards will be higher in the country with:
A. the lower share of population employed. B. the smaller population. C. the higher share of population employed D. the larger population.
Is it true that in the long run it is impossible for firms functioning in a perfectly competitive market to earn positive economic profits? Explain your answer
What will be an ideal response?
In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate
A) not change; not change B) decrease; decrease C) decrease; not change D) not change; decrease
During a period of expansionary monetary policy
A) the price level is increased, which leads to an increase in the money supply. B) the price level is decreased, which leads to a decrease in the money supply. C) the rate of growth of the money supply is increased, leading to an increase in the price level. D) the rate of growth of the money supply is reduced, leading to a decrease in the price level.