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Discrimination is an economic concern on a micro level because it creates an inefectiveness in the economy. Let us look at a simple model with black and white labour, assuiming "ceteris paribus", the only difference between the two workers is the colour of their skin. The marginal product is not dependent of the colour of the workers skin so with everything else equal as we assumed, then the marginal product of the two workers is also equal to each other.
If we simplify the model to better understand then the cost of the company is:
C=quantityofblacksemployed*wageblack+quantityofwhitesemployed*wagewhite
The company maximises it's profit when the wage=Marginal revenue product of labour = MR*MPL... (marginal revenue*marginal product of labour)
But with discrimination, whites can take higher wages then optimal and blacks must take lower wages then what's optimal for the company. This creates an opportunity cost for the company that doesn't maximize its profits.
On an aggregate level this has an overall effect on the economy because a part of the GDP of an economy is the sum of what all companies produces...
What else can I help you with?
Is Socio-economic discrimination in the justice system?
Yes.
Concern about the general level of prices in an economy is primarily a concern about the economic goal of?
Price level stability.
Price discrimination is prima facie evidence of what economic condition?
monopoly
What are the effects of gender discrimination on social and economic development in tanzanian?
This discrimination makes it difficult for women to get jobs in the economy. This slows down the economy making it difficult to expand.
Roosevelt's policy toward the 1933 London economic conference showed the concern for establishing a stable international economic order. true or false?
False
The daWES PLAN OF 1924 SHOWED AMERICAS?
concern over Germany's economic crisis
Is Socio-economic discrimination in the justice system?
Yes.
What was the major concern of neoconservatives?
economic growth
What is the greatest concern with eastern Europe?
Economic Development
Concern about the general level of prices in an economy is primarily a concern about the economic goal of?
Price level stability.
Price discrimination is prima facie evidence of what economic condition?
monopoly
What caused the great migration?
racial violence and economic discrimination against blacks in the south
Which interest groups work for policies that will help their members with financial concern?
economic
What is the term for discrimination against poor people?
It would be discrimination against an economic class. Unfortunately from what I can tell it is perfectly legal to discriminate against economic class and there is little that you can do about it. It is not a protected class. Your credit score and lending opportunities are a perfectly good and much needed example of discrimination against poor people is legal. A.K.A - Povertyism
What are the effects of gender discrimination on social and economic development in tanzanian?
This discrimination makes it difficult for women to get jobs in the economy. This slows down the economy making it difficult to expand.
During the 1960s and 1970s Asian Americans?
made economic gains but continued to face discrimination
Why did African Americans begin to move northern cities in the 1890s?
that the African Americans hoped to escape discrimination and find better education and economic opportunities.
