Question

Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless
a. the marginal benefit of a corporate job decreased.
b. cost of a corporate job increased.
c. the cost of teaching increased.
d. the benefit of teaching increased.

Answer 1

Answer:

c. the cost of teaching increased.

Explanation:

If the marginal benefit of the corporta job decrease, then is less attractive to change job.

if the cost of corporate job increase, there is less gain thus, less attractive to move to this kind of job.

Last, if the benefit of teaching increased; with more reasons now, he professor will continue with their teaching activity.

From the given options: Only if the cost of teaching increase enought it may reconsider changing job.

Answer 2

Answer:

c. the cost of teaching increased.

Explanation:

The increase in marginal cost of teaching will decrease overall benefits for her. And when the cost become so high that it is better to have corporate job, she will leave teaching.