-The Marginal Cost of Educating a Student Is $30,000, and This

question 270

Multiple Choice

-The marginal cost of educating a student is $30,000, and this cost is independent of the number of students. The figure above shows the marginal private benefit that a student receives from education. An independent government agency determines that the efficient number of students is 40,000. What is the marginal social benefit from education?

• A) It depends on the demand.
• B) $20,000
• C) $10,000
• D) $40,000