Suppose that all employers in a perfectly competitive industry do not have a preference for discriminating against

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Suppose that all employers in a perfectly competitive industry do not have a preference for discriminating against African Americans but that all the employees at one firm do. Describe what will happen to the profit- maximizing output level of this firm in the long run if the employees’ racial preferences influence the firm’s hiring decisions.

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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