It Is Argued That Competitive Markets Provide a "Natural Remedy

Multiple Choice

It is argued that competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the potency of that natural remedy?

A) Governments sometimes mandate discriminatory practices.
B) Some employees have a lot of job experience; others have little job experience.
C) In a discriminatory environment, a competitive firm that takes prices and wages as given has nothing to gain from any particular choice it makes regarding who to hire or which customers to serve.
D) Not all firms exhibit social responsibility in sufficient measure to counter discriminatory wage practices.