Question

Which of the following statements about employer prejudice is true?

A. Employer prejudice occurs only in low-paying jobs.
B. Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly.
C. Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices.
D. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.
E. Legislation has ended employer prejudice in the United States.

Answer 1

Answer:

D. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate.

Explanation:

In a competitive market , efficiency of employee is the only factor that is taken into account to meet the challenges of the market . The employer can not afford the cost of being prejudiced against a staff because it only has deleterious effect on the morale of the employee. So in a competitive market ,there is no scope for employer's prejudice.