-The above figure shows the marginal benefits and marginal costs of a college education. If a voucher for $5,000 is given to the students, then 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 a voucher for $5,000 is given to the students, then colleges charge tuition of
A) $0. 
B) $5,000. 
C) $10,000. 
D) $15,000.

Quizplus · Accepted Answer

The voucher effectively reduces the cost of tuition by $5,000. If the marginal cost and marginal benefit intersect at $10,000, the voucher allows students to pay this amount, making the effective tuition $10,000.

-The Above Figure Shows the Marginal Benefits and Marginal Costs