The after-school tutoring industry is competitive, and so is the labor market for after-school tutors. Suppose maleand female tutors have equal experience and skill. Currently, some tutoring centers are biased and will only hiremale tutors, whereas unbiased tutoring centers desire to hire the cheapest tutors and do not care about theirgenders. 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 thefollowing statements, assuming consumers do not discriminate between male and female tutors?Oa. All firms that hire only male tutors will shut down because they are not able to compete.O b. Nothing will change; all firms will continue to operate as they do now.Oc. Tutoring centers only hiring male tutors have lower cost, leading to an increase in the demand for maletutors.Od. All firms that hire only female tutors will shut down because they are not able to compete.

In the scenario described, the after-school tutoring industry faces a gender bias issue where some…

Answered: The after-school tutoring industry is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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