-The figure above shows an education market in which the government is providing households with vouchers.What is the efficient quantity of students?
A) 2 million
B) 4 million
C) 6 million
D) more than 6 million
E) more than 4 million and less than 6 million

Question

-The figure above shows an education market in which the government is providing households with vouchers.What is the efficient quantity of students?
A) 2 million 
B) 4 million 
C) 6 million 
D) more than 6 million 
E) more than 4 million and less than 6 million

Quizplus · Accepted Answer

The efficient quantity of students is determined where the marginal social benefit equals the marginal social cost, which is typically at the equilibrium point in a market without externalities. In this context, it is given as 6 million.

-The Figure Above Shows an Education Market in Which the Government