Question

Regardless of area of expertise, a public school pays all teachers the same annual wage. At $70,000, it hires good teachers in all areas except science. Because science is a field in demand, the school can only hire poor science teachers. It would have to pay science teachers $90,000 to hire good science teachers. If one out of five teachers is a science teacher, what is the marginal expense of getting a good science teacher instead of a poor one?

Answer 1

Answer:

$100,000

Explanation:

Given data :

It is given that a public school pays all the teachers in its school the same annual wage.

The public school hires good teachers in all the areas except science, at a price of = $70,000

The school could hire only poor science teachers because the demand of science teachers are high.

Amount to be paid to hire good science teachers = $90,000

We know,

$\text{marginal cost} = \frac{\text{change in cost}}{\text{change in quantity}}$

Change in cost = $90,000 - $70,000

                          = $20,000

∴  $\text{marginal cost}=\frac{20000}{2}\times 10$

                           =$100,000