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, while 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. Long run competition in the after-school tutoring market is consistent with which of the following statements, assuming consumers do not discriminate between male and female tutors?
A)Tutoring centers only hiring male tutors have lower cost, leading to an increase in the demand for male tutors.
B)All firms that hire only male tutors will shut down because they are not able to compete.
C)All firms that hire only female tutors will shut down because they are not able to compete.
D)Nothing will change; All firms will continue to operate as they do now.

Question

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, while 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. Long run competition in the after-school tutoring market is consistent with which of the following statements, assuming consumers do not discriminate between male and female tutors?
A)Tutoring centers only hiring male tutors have lower cost, leading to an increase in the demand for male tutors.
B)All firms that hire only male tutors will shut down because they are not able to compete.
C)All firms that hire only female tutors will shut down because they are not able to compete.
D)Nothing will change; All firms will continue to operate as they do now.

Quizplus · Accepted Answer

In the long run, firms that discriminate against female tutors will face higher costs due to paying higher wages to male tutors. As a result, they will not be able to compete with unbiased firms that hire the cheapest tutors regardless of gender. Therefore, all firms that hire only male tutors will eventually shut down, leading to a more competitive market where male and female tutors are hired based on their skill and experience rather than gender.

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

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