Over 85% of qualified secondary school teachers are employed in state-funded schools. Teachers in these state-funded schools have experienced average salary increases significantly below those of teachers in private independent schools over the last decade.
Using the information provided and the concept of monopsony, explain why secondary school teachers in the state sector have experienced lower salary growth than those in the private sector.
92 exam-style questions on Edexcel A A Level Economics 3.4 Market structures, covering 3.4.1 Efficiency, 3.4.2 Perfect competition, 3.4.3 Monopolistic competition, 3.4.4 Oligopoly, 3.4.5 Monopoly, 3.4.6 Monopsony, and 3.4.7 Contestability. Each one has a worked solution and a mark scheme showing where the marks go.