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

question 79

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 universities to make the efficient number of students undertake education?

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

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Definitions:

Industrial Production

The measure of the output of the industrial sector of the economy, which includes manufacturing, mining, and utilities.

Birth Defects

Congenital abnormalities that are present at birth and can result in physical, mental, or metabolic dysfunctions, often leading to disability or death.

First Stage

Refers to the initial phase of a process or development, often marked by early or beginning steps.

Labor

The physical and cognitive effort involved in the process of working or the act of childbirth.