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:

Reality Shock

The experience of discovering that one's expectations of a profession or activity differ significantly from the actual experience.

Information Overload

A condition in which the volume of information one has to deal with exceeds one's capacity to process it effectively.

Organizational Socialization

refers to the process through which new employees learn the norms, values, behaviors, and social knowledge necessary to integrate into an organization and become productive members.

Organizational Culture

The shared values, beliefs, norms, and practices that guide the behavior of individuals within an organization, shaping its social and psychological environment.