Firms that operate in competitive product markets and choose to practice discrimination in hiring workers
a. will survive if they increase production and garner a larger market share.
b. will eventually earn zero economic profits.
c. will survive as long as they are willing to have a smaller market share.
d. are likely to eventually go out of business.
d
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Classical growth theory predicts
A) a slowdown in population growth over time. B) sustained increases in economic growth in the long run. C) sustained increases in the standard of living in the long run. D) real GDP per person will remain at the subsistence level over time. E) the population growth rate slows as real GDP per person rises.
Combine a graph showing the interest parity condition and one showing money demand and supply to demonstrate simultaneous equilibrium in the money market and the foreign exchange market. How would an increase in the U.S
money supply affect the Dollar/Euro exchange rate and the U.S. interest rate? Illustrate your answer graphically and explain.