Question

What is the main theoretical implication regarding the standard employer-based discrimination model? A. Most firms are discriminatory. B. Workers don't care if firms are discriminatory. C. Discrimination is not profitable. D. Discrimination can only occur if there are exactly two types of labor (e.g., white and black). E. Discrimination can only occur in competitive labor markets.

Answer 1

The correct answer is C. Discrimination is not profitable.

Step-by-step explanation:

In the discrimination model, employers refuse to hire people with some characteristics that are not pleasant for them. However, this decision implies that the businesses lose time looking for the person that they require. So, it is not profitable.