-The figure above shows the market for private elementary school education in Chicago.There is no external cost of private elementary education.If the marginal social benefit of private elementary education equaled the marginal social cost,the deadweight loss in Chicago's private education market would equal
A) 0.
B) $800,000.
C) $1,600,000.
D) more than $1,600,000.
E) more than $800,000 and less than $1,600,000.

Question

-The figure above shows the market for private elementary school education in Chicago.There is no external cost of private elementary education.If the marginal social benefit of private elementary education equaled the marginal social cost,the deadweight loss in Chicago's private education market would equal
A) 0. 
B) $800,000. 
C) $1,600,000. 
D) more than $1,600,000. 
E) more than $800,000 and less than $1,600,000.

Quizplus · Accepted Answer

When the marginal social benefit equals the marginal social cost, it indicates that the market is operating efficiently, with no externalities causing a divergence between private and social costs or benefits. Therefore, there would be no deadweight loss in this scenario.

-The Figure Above Shows the Market for Private Elementary School