-The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient amount of college education, the cost paid by the taxpayers is
A) zero.
B) $8,000 per student.
C) $4,000 per student.
D) $12,000 per student.

Question

-The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient amount of college education, the cost paid by the taxpayers is
A) zero. 
B) $8,000 per student. 
C) $4,000 per student. 
D) $12,000 per student.

Quizplus · Accepted Answer

The efficient amount of college education is where marginal cost equals marginal benefit. If the marginal cost is $4,000 per student, then that is the cost paid by taxpayers for the efficient provision.

-The Table Above Shows the Marginal Costs and Marginal Benefits