Higher Education Creates

question 84

Multiple Choice

Higher education creates

• A)side payments
• B)negative externalities
• C)a wedge between marginal social cost and marginal private cost
• D)positive externalities
• E)economic efficiency

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Definitions:

MCA Curve

A term that could be mistaken but likely refers to the Marginal Cost Curve, which depicts the additional cost of producing one extra unit of output.

Marginal External Cost

The additional cost incurred by society as a whole due to one more unit of a good being produced, not accounted for by the producer.

Competitive Price

The price at which a product or service is sold that is reasonably close to the prices of competing products or services in the same market.

Socially Optimal Levels

Situations or outcomes in an economy that are considered the best from the standpoint of society as a whole, often involving efficient allocation of resources.