Chat with AI
Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498 Exercise 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?
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?
Explanation
Verified
Verified
Private cost:
Private cost refers to th...
Economics 1st Edition by Dean Karlan,Jonathan Morduch
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
