In a competitive market, which of the following is least likely to be the source of a persistent discriminatory wage differential? a. The customer b. The government c. The employer d. All of the answer choices could be the source of a persistent discriminatory wage differential.

1. In a competitive labor market, any factor causing wage differentials can be examined through standard economic models. In these models, firms, customers, and government policies may all affect the wages paid to different groups. 2. Taste-based discrimination theory, for instance, explains how an employer’s prejudices might lead them to pay higher wages to less-preferred workers or lower wages to more-preferred workers. However, in a competitive market, an employer who discriminates by paying different wages may be undercut by other employers who do not discriminate, thereby eliminating persistent discriminatory wage differentials through competition. 3. Similarly, if customers exhibit discriminatory preferences, they might favor one group over another, potentially influencing the hiring practices or wages offered by employers that cater to such customer preferences. In some markets (especially in services), customer preferences can lead to wage differences between groups. 4. The government, on the other hand, typically intervenes in labor markets by setting policies like minimum wages, anti-discrimination laws, or other regulations. These interventions are generally designed to reduce, rather than promote, persistent wage differentials. Moreover, in highly competitive markets, government actions are less likely to be the source of a systematic disparity that persists, because such disparities would prompt regulatory corrections and adjustments by both the private sector and policymakers. 5. Given these considerations, among the options provided, the government is the least likely source of a persistent discriminatory wage differential in a competitive market. \[ \textbf{Answer: (b) The government} \]