-The table above shows the marginal private benefit, marginal social benefit and marginal cost of education at the University of Epsilon. What is the efficient number of students at the university?
A) 4,000
B) 1,000
C) 5,000
D) 3,000

Question

-The table above shows the marginal private benefit, marginal social benefit and marginal cost of education at the University of Epsilon. What is the efficient number of students at the university?
A) 4,000 
B) 1,000 
C) 5,000 
D) 3,000

Quizplus · Accepted Answer

The efficient number of students is where the marginal private benefit equals the marginal social cost. This occurs at 4,000 students.

-The Table Above Shows the Marginal Private Benefit, Marginal Social