Question

A perfectly competitive market is initially in long-run competitive equilibrium. each firm in the market is earning zero economic profit. the owner of one firm decides to discriminate against employees of race x by not hiring them, or by firing those employees of race x who currently work for him. if employees of race x are high-quality employees, and other firms hire them, then the owner of the discriminating firm will soon find that his costs rise (above that of other firms) and he will begin earning
a. below normal profits.


b. normal profits.


c. positive economic profits.


d. losses.


e. a and d

Answer 1

The answer to the question you are asking is e