Competitive markets tend to Meck Work (2 remaining) a. reduce labor market discrimination because nondiscriminating firms will employ cheaper labor, earn more profits, and drive discriminating firms out of the market b. increase labor market discrimination because bigoted employers can charge any price they want in a competitive market to cover the cost of their discrimination c. have no impact on labor market discrimination d. increase labor market discrimination because some workers can charge more for their services than other workers in a competitive market

In a competitive market, nondiscriminating firms have a distinct advantage because they can attract talent at lower wages compared to firms that engage in discrimination. As these efficient firms grow and dominate the market, they force their discriminating counterparts to either adapt or exit, leading to an overall reduction in discrimination. This dynamic encourages equality and fairness in hiring practices, as firms quickly realize that diverse workforces lead to increased productivity and profitability. However, while competitive forces tend to reduce discrimination, it’s vital to remember that markets don’t operate in a vacuum. Factors like social norms, government regulations, and consumer preferences play significant roles too. Discrimination can persist if consumer demand supports biased practices, demonstrating that eliminating discrimination requires more than just market forces. It calls for a collective commitment to equity and inclusivity across all levels of society.