Which of the following factors helps explain why public school administrators have little economic incentive to operate efficiently?
A) Public schools have substantial monopoly power.
B) The funding levels for public schools are determined by politicians rather than directly by consumers.
C) It is expensive for consumers to switch from a public to a private school.
D) All of the above are true.

Question

Quizplus · Accepted Answer

Public schools have substantial monopoly power because they are the main providers of education in a given area, which leads to little competition. The funding levels for public schools are determined by politicians rather than directly by consumers, which means that there is less pressure to operate efficiently in order to attract or retain students. Additionally, it is expensive for consumers to switch from a public to a private school, which further reduces the incentives for public school administrators to operate efficiently.

Which of the Following Factors Helps Explain Why Public School