-The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, colleges charge tuition of
A) $0.
B) $5,000.
C) $10,000.
D) $15,000.

Question

-The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, colleges charge tuition of
A) $0. 
B) $5,000. 
C) $10,000. 
D) $15,000.

Quizplus · Accepted Answer

The tuition charged by colleges without subsidies is determined where the marginal cost curve intersects the marginal benefit curve, which is at $10,000.

-The Above Figure Shows the Marginal Benefits and Marginal Costs