A New Teacher Often Makes Less Than a Teacher with 20

question 90

Multiple Choice

A new teacher often makes less than a teacher with 20 years' experience because of:

• A)discrimination.
• B)differences in human capital.
• C)efficiency wages.
• D)differences in physical capital.

---

Definitions:

Economic Profits

Profits exceeding the total costs of production, including both explicit and implicit costs, representing gains above what could be earned in the next best alternative use of resources.

Pure Monopolist

A market participant who exclusively controls the supply of a particular good or service, without competition or substitute products.

ATC

Average Total Cost, which represents the per-unit cost of production, including both fixed and variable costs.