The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose maleand female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hiremale tutors, whereas unbiased tutoring centers desire to hire the cheapest tutors and do not care about theirgenders. As a result, the equilibrium wage for male tutors is higher than that of female tutors.Refer to Scenario 19-6. Long-run competition in the after-school tutoring market is consistent with which of thefollowing statements, assuming consumers do not discriminate between male and female tutors?Oa. All firms that hire only male tutors will shut down because they are not able to compete.O b. Nothing will change; all firms will continue to operate as they do now.Oc. Tutoring centers only hiring male tutors have lower cost, leading to an increase in the demand for maletutors.Od. All firms that hire only female tutors will shut down because they are not able to compete.

In the scenario described, the after-school tutoring industry faces a gender bias issue where some…

Answered: The after-school tutoring industry is…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 11P

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Similar questions

Other than the demand for labor, what would be another example of a 'derived demand?
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Paolo is a stav-at-home parent who lives in Philadelphia and provides math tutoring for extra cash. At a wage of $25 per hour, he is willing to tutor 6 hours per week. At $35 per hour, he is willing to tutor 16 hours per week. Using the midpoint method, the elasticity of Paolo's labor supply between the wages of $25 and $35 per hour is approximately _____, which means that Paolo's supply of labor over this wage range is _____. Part 1: 0.03, 0.37, 2.73, or 11 Part 2: elastic or inelastic
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You are considering hiring an employee whose marginal revenue product will be $17 per hour, and the market wage for such workers is $15 per hour. You should Select one: a. hire the worker, but agree to pay her $19 per hour. b. not hire the worker since the marginal revenue product is too high. c. not hire the worker because the gap between marginal revenue product and the wage is not large enough. d. hire the worker at the market wage.

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