The instructors at College A are regularly late for their office hours. Based on a theory presented in the text,we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A.
A) lower; higher; small
B) higher; lower; small
C) lower; higher; large
D) higher; lower; large

Question

Quizplus · Accepted Answer

The theory suggests that when there is a lack of competition (in this case, between College A and other colleges), the gap between the equilibrium tuition and the actual tuition charged by the college is larger. The fact that the instructors are regularly late for their office hours suggests that there may be a lack of competition, which supports the prediction of a larger gap between the lower student tuition and higher equilibrium tuition. Choice C matches this prediction.

The Instructors at College a Are Regularly Late for Their