Exhibit 17-8
-Exhibit 17-8 represents the consumer market for higher education.If people base their education decisions on the marginal social benefit of education,how many years of education will they get?

Question

Exhibit 17-8 
-Exhibit 17-8 represents the consumer market for higher education.If people base their education decisions on the marginal social benefit of education,how many years of education will they get?

Quizplus · Accepted Answer

At the point where the marginal social benefit intersects with the marginal social cost, the market reaches an efficient outcome. In this case, it occurs at 5 years of education, where the marginal benefit and cost are equal at approximately $50,000. Therefore, individuals in this market would receive 5 years of education if they base their decisions on the marginal social benefit of education.

Exhibit 17-8 -Exhibit 17-8 Represents the Consumer Market for Higher Education.If People