The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the efficient number of students at the college?
A) 1,000
B) 3,000
C) 4,000
D) 5,000
C
You might also like to view...
Marginal profit equals the difference between marginal revenue and average cost.
Answer the following statement true (T) or false (F)
Suppose that demand for a good increases and, at the same time, supply of the good decreases. What would happen in the market for the good?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
If a tax (paid by consumers) on a good is reduced, this would
A. move its demand curve to the left. B. cause a movement along the demand curve to a (higher price, lower quantity) point. C. move its demand curve to the right. D. cause a movement along the demand curve to a (lower price, higher quantity) point.
Marginal propensity to consume (MPC) is the fraction of extra income that a household spends on consumption.
Answer the following statement true (T) or false (F)