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

The marginal expense of getting a good science teacher instead of a poor one is $4,000.

Step-by-step explanation:

The marginal expense of getting a good science teacher instead of a poor one can be calculated by finding the difference in wages between the two types of teachers. The school pays all teachers the same annual wage of $70,000, except for science teachers who would need to be paid $90,000 to hire good ones. Therefore, the marginal expense for hiring a good science teacher instead of a poor one is $90,000 - $70,000 = $20,000.

To calculate the marginal expense, we need to know the number of science teachers in relation to the total number of teachers. Since one out of five teachers is a science teacher, we can calculate the marginal expense by multiplying the difference in wages by the proportion of science teachers. So, the marginal expense is $20,000 * 1/5 = $4,000.

Answer 2

$100,000

Step-by-step 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

∴
`$\text{marginal cost}=(20000)/(2)* 10$`

=$100,000