A prestigious private high school requires each of its teachers to have a Ph.D. in the subject they teach. This requirement is likely to
A)increase the supply of teachers to this school.
B)increase wages for teachers at the private school relative to those at public schools.
C)decrease the marginal product of teachers at the private school.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Requiring teachers to have a Ph.D. in the subject they teach narrows down the pool of potential applicants, leading to a decreased supply of teachers. However, this requirement also increases the quality of the teachers at the school, which can justify higher wages. Therefore, wages for teachers at the private school are likely to be higher relative to those at public schools. The requirement for a Ph.D. does not necessarily decrease the marginal product of teachers, as having highly qualified and knowledgeable teachers can actually increase the productivity of students.

A Prestigious Private High School Requires Each of Its Teachers