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

question 67

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 subsidy per student must be given to colleges to make the efficient number of students undertake education?

• A) It depends on the demand.
• B) $20,000
• C) $30,000
• D) $10,000

---

Definitions:

Operational Decisions

Decisions made in the day-to-day functioning of a company that are routine and aim to improve effectiveness and efficiency.

Radical Shifts

Significant changes that drastically alter the existing order, perceptions, or conditions in a given context, often leading to a new paradigm.

Organizational Development

A planned, systemic approach to improving the effectiveness of an organization through changes in its processes, culture, and structure.

Change Management

The approach to transitioning individuals, teams, and organizations to a desired future state.