If firms are competitive, then labor-market discrimination
Answer
A.cannot exist in either the short run or the long run.
B.will be more of a problem than if the market were monopolistic or imperfectly competitive.
C.likely will not be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies.
D.likely will be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.
Answer
A.cannot exist in either the short run or the long run.
B.will be more of a problem than if the market were monopolistic or imperfectly competitive.
C.likely will not be a long-run problem unless customers exhibit discriminatory preferences or government maintains discriminatory policies.
D.likely will be more of a problem in the long run than in the short run due to the zero-profit condition that characterizes long-run equilibrium for competitive firms.