Economics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 3

Figure 18P-4 shows supply and demand for firstaid training, based on private costs and benefits.
a. Suppose that the external benefit from firstaid training is worth $6. Graph the demand curve for first-aid training based on the social benefits.
b. How many hours of first-aid training will occur?
c. What is the socially optimal quantity of firstaid training?
d. How much surplus is lost when consumers are unable to capture the $6 external benefit they provide from first-aid training?