How do competitive markets generally affect discrimination in the labor market?

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They amplify labor market discrimination since certain employees can demand higher wages than others within a competitive environment.They have no significant effect on discrimination among workers in the labor market.They decrease labor market discrimination because firms that avoid bias hire lower-cost workers, earn greater profits, and eventually push discriminatory firms out of business.They worsen labor market discrimination because prejudiced employers can impose any wage premium to offset their discriminatory preferences.

Explanation

Competitive markets tend to reduce labor market discrimination. This occurs because firms that do not discriminate can hire workers at lower costs, achieve higher profitability, and outcompete firms that practice discrimination, ultimately forcing the latter out of the market.