Final answer:
The correct statement concerning discrimination in markets is that under some conditions markets may help to eliminate discrimination. Competitive markets offer non-discriminatory employers a profitability advantage, potentially leading to reduced discrimination. However, social norms and multi-level discrimination can inhibit the market's ability to fully eliminate discriminatory practices. Option C is correct.
Step-by-step explanation:
The question we are examining is which of the following is correct with regard to discrimination in economic markets. The correct answer is: C. Under some conditions, markets may help to eliminate discrimination. The idea that competition could reduce discriminatory behaviors in the marketplace originates from the concept of taste-based discrimination.
Theoretically, if all workers are equally productive, those employers who do not engage in discrimination can hire workers at a lower cost, which are avoided by other employers due to their prejudices. These non-discriminating employers can then benefit from reduced labor costs and increased profitability, potentially pushing out discriminatory employers.
However, as noted by economist Gary Becker, discrimination can often persist because it exists at multiple levels: within management, the workforce, and the customer base. In some cases, addressing discrimination can negatively impact a firm by disrupting the existing workforce or customer relations. Furthermore, social norms can influence business practices and can make it difficult for market forces alone to address discriminatory behavior.