-The Above Figure Shows the Marginal Private Benefit and Marginal

question 23

Multiple Choice

-The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the private market outcome is inefficient because

• A) no students will go to college.
• B) society places less value on educating the next student than it will cost society to educate that student.
• C) society places greater value on educating the next student than it will cost society to educate that student.
• D) the marginal cost will shift upward.

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