In Many Universities, Teaching Summer Classes Pays Professors a Sum

question 245

Essay

In many universities, teaching summer classes pays professors a sum of money in addition to their annual salary. Full professors who have been at the university the longest typically get first priority for teaching summer classes, with newer assistant professors at the end of the line. Given this system, who ends up teaching the majority of summer classes at these universities? Explain why. What role do the different professors' labor supply curves play?

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Definitions:

Gross Profit Method

An accounting technique used to estimate the amount of ending inventory and cost of goods sold, based on the gross profit margin.

Ending Inventory

The total value of all unsold goods and materials that a company holds at the end of an accounting period.

Gross Profit on Sales

The difference between sales revenue and the cost of goods sold before deducting overheads, taxes, or interest.

FIFO Retail Inventory Method

An accounting method for valuing inventory where the first items purchased are the first ones to be sold.