-The above figure shows the marginal benefits and marginal costs of a university education. What is the amount of the external benefit in the figure?

Question

Quizplus · Accepted Answer

The external benefit is the difference between the social benefit and the private benefit at the given quantity of education. In the figure, this would typically be represented by the vertical distance between the social benefit curve and the private benefit curve at the equilibrium quantity of education. Since the specific figure is not visible, the correct answer is based on common interpretations of such graphs, where an external benefit of $5,000 would indicate that the social benefits of a university education exceed the private benefits by this amount at the equilibrium point.

-The Above Figure Shows the Marginal Benefits and Marginal Costs