Scenario 19-6 the After-School Tutoring Industry Is Competitive, and So Is the Is

question 57

Multiple Choice

Scenario 19-6
The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose male and female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hire male tutors, whereas unbiased tutoring centers desire to hire the cheapest tutors and do not care about their genders. As a result, the equilibrium wage for male tutors is higher than that of female tutors.
-Refer to Scenario 19-6. If consumers do not discriminate between biased and unbiased tutoring centers, then

• A)price of tutoring must increase in the short run to account for higher cost to biased tutoring centers.
• B)competition in the after-school tutoring industry will ensure the difference in wages will persist in the long run.
• C)biased tutoring centers will be more profitable than unbiased tutoring centers in the short run.
• D)unbiased tutoring centers will be more profitable than biased tutoring centers in the short run.

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Definitions:

Sexual Relationship

A relationship between individuals that involves sexual interactions, which may or may not include emotional intimacy or commitment.

Homosexuality

The romantic or sexual attraction to people of one's own sex.

Heterosexuality

Sexual attraction or behavior directed toward individuals of the opposite sex.

Bisexuality

A sexual orientation characterized by the romantic or sexual attraction to people of both one's own gender and other genders.