Question

In: Economics

If labor markets are perfectly competitive, then ________ discrimination will not be a long-run equilibrium result...

If labor markets are perfectly competitive, then ________ discrimination will not be a long-run equilibrium result

A Employer

b customer

c employee

d statistical

Solutions

Expert Solution

Employer discrimination can be the case where thelabour can be willing to work with one particular employee rather than other customer and statistical discrimination is not into consideration here because nowhere it is spoken about the end product as a result of which customer is out of the scenario and nothing about the employment of statistics is given and therefore

(a,b,d) are wrong

However employee discrimination shouldn't be done in the long run because in a perfectly competitive labour market every labour is same with the same amount of productivities and you offer the same wage as a result of which there is no point in discriminating due to the productivity and skills because all are same

Therefore (c) is the answer to this question


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