Gary Becker's controversial The Economics of Discrimination concludes that Price discrimination has no effect on final profits. Price discrimination benefits monopolies. Labor discrimination in hiring results in more efficient allocations of production. Discrimination in hiring practices has no effect on final profits. Labor discrimination harms firms that practice it due to increased labor costs. Price discrimination harms monopolies, which refutes over two centuries of economic theory.

Question

Business

Uriel Frazier

17 February, 13:13

Gary Becker's controversial The Economics of Discrimination concludes that Price discrimination has no effect on final profits. Price discrimination benefits monopolies. Labor discrimination in hiring results in more efficient allocations of production. Discrimination in hiring practices has no effect on final profits. Labor discrimination harms firms that practice it due to increased labor costs. Price discrimination harms monopolies, which refutes over two centuries of economic theory.

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Answers (1)

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Angela · Answer 1

Labor discrimination harms firms that practice it due to increased labor costs

Explanation:

Mr. Gary Becker's research addresses the economic impact of discrimination on the economy due to race, ethnicity, sex, color, social status, appearance, or other non-punitive factors. He shows that discrimination by any party in the market place lowers both their own real earnings and those of the minority.

Therefore the second last options fit the current situation and hence it is the correct option.