-The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, the amount of enrollment is
A) efficient.
B) inefficient because marginal social cost exceeds marginal social benefit.
C) inefficient because marginal social benefit exceeds marginal social cost.
D) inefficient because the quantity of education demanded exceeds the quantity of education supplied.

Question

-The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, the amount of enrollment is
A) efficient. 
B) inefficient because marginal social cost exceeds marginal social benefit. 
C) inefficient because marginal social benefit exceeds marginal social cost. 
D) inefficient because the quantity of education demanded exceeds the quantity of education supplied.

Quizplus · Accepted Answer

In a perfectly competitive and unregulated market, the efficient level of enrollment occurs where marginal cost equals marginal benefit. If marginal social benefit exceeds marginal social cost, it indicates under-enrollment, making the situation inefficient.

-The Table Above Shows the Marginal Costs and Marginal Benefits