-The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the tuition that will make the number of students equal to the efficient number?
A) $400
B) $800
C) $2,800
D) $3,200

Question

-The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the tuition that will make the number of students equal to the efficient number?
A) $400 
B) $800 
C) $2,800 
D) $3,200

Quizplus · Accepted Answer

The efficient number of students is where the marginal social benefit equals the marginal cost. This occurs at 800 students. The tuition that will make the number of students equal to the efficient number is the tuition that equates the marginal private benefit to the marginal cost. This occurs at $800.

-The Table Above Shows the Marginal Private Benefit, Marginal Social