Answer each of the following questions:
1. Is there an opportunity cost of using your time to tutor? Explain.
2.
Your marginal cost is the cost of using one more hour to supply tutoring services. Would the marginal cost of
your time increase if you spent more hours during the week tutoring? For example, when you are not tutoring,
your marginal cost is the cost of spending your first hour doing so. But when you already are providing eight
hours of tutoring service per week, your marginal cost is the cost of spending your ninth hour doing so. Does
your marginal cost rise as you spend more hours supplying tutoring services? Explain.
Do the numbers you have provided illustrate the price effect as it relates to your supply of labor? Explain why
or why not.