If the Marginal Private Benefit of Attending College for Shelly

question 174

Multiple Choice

If the marginal private benefit of attending college for Shelly is $40,000 and the marginal external benefit is $15,000,she will attend college if the cost of attendance is no more than

• A) $55,000.
• B) $45,000.
• C) $40,000.
• D) $25,000.
• E) $15,000.

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Definitions:

Unit Variable Cost

The cost associated with producing an additional unit of a product, not including fixed costs that remain constant regardless of production volume.

Profit

The financial gain realized when income generated from business activities exceeds the expenses, taxes, and costs associated with maintaining the business.

Picture Frame Store

A retail outlet specializing in selling frames for artwork, photographs, and other decorative items to be displayed.

Washburn Guitars

A renowned manufacturer known for producing high-quality guitars and string instruments, with a history dating back to the 19th century.