In What Way Do Competitive Markets Have a "Natural Remedy

Multiple Choice

In what way do competitive markets have a "natural remedy" for discriminatory hiring practices?

A) Governments regulate to resolve problems of discrimination.
B) Profit-maximizing firms that do not discriminate tend to replace firms that discriminate.
C) Wages paid to groups that are victimized by discrimination are eventually bid up to above-equilibrium levels.
D) Discrimination is usually the outcome of rational decision-making processes, and competitive markets produce rational outcomes.