Question: explain the difference between taste-based discrimination and statistical discrimination . Suppose there are three firms operating in the same market, one exhibits taste-based discrimination, one

explain the difference betweentaste-based discriminationandstatistical discrimination.

Suppose there are three firms operating in the same market, one exhibits taste-based discrimination, one exhibits statistical discrimination, and the other does not discriminate. Which of the three is expected to be the most successful (make the most profit), explain your answer. (Hint: assume the discrimination is in their hiring practices, do not factor in any potential negative publicity)

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