Suppose that both the local government and a for-profit business run primary schools. The local government provides free education while the business charges fees. Everything else - students, teachers wages, and facilities - is the same. (a) Compare the value added of the two service providers. (b) If the teachers union increases wages for all teachers, in both government and for-profit schools, how would that affect the value added?

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The Answer of Suppose that both the local government and a for-profit business run primary schools. The local government provides free education while the business charges fees. Everything else - students, teachers wages, and facilities - is the same. (a) Compare the value added of the two service providers. (b) If the teachers union increases wages for all teachers, in both government and for-profit schools, how would that affect the value added?

Suppose That Both the Local Government and a For-Profit Business