Use marginal analysis to explain why it is possible to “have too much of a good thing.” Use education as an example
Please provide the best answer for the statement.
This explanation is based on an evaluation of the marginal costs and marginal benefit of providing a good or service. We may want more education for our society, but at some point the marginal cost of providing additional education is greater than the marginal benefit of the additional education. We would have to give up too many other things to obtain the additional education. For example, would it make sense to provide additional education resources for everyone so that they can earn a Ph. D. degree? The answer is no. In this case, the marginal cost of these additional educational resources (for example, lost labor time or inefficient use of people’s abilities) would not be worth the marginal benefit to society of having everyone earn a Ph. D. degree.
You might also like to view...
Which of the following statements is most correct?
A. Fisher's assumption about money velocity being stable in the long run was incorrect. B. The velocity of M2 is relatively stable across all time periods. C. The velocity of M2 is less stable than the velocity of M1. D. The velocity of M2 is more volatile in the short run than the long run.
Other things held constant, private disposable oncome would increase if
A. Taxes increase B. Government transfers increase C. Consumption increases D. Government purchases increase.
If the market equilibrium quantity is less than the socially optimal quantity, one can infer that:
A. the private demand curve for the activity is above the socially optimal demand. B. the private supply curve for the activity is below the socially optimal supply curve. C. there is a negative externality associated with this good. D. there is a positive externality associated with this good.
When economies of scale are large, firms can reduce their average total cost by:
A. eliminating the bureaucratic costs. B. merging into even larger firms. C. hiring professional managers. D. selling off their subsidiaries.