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Private vs. Social BenefitsThe graph shows the marginal benefit (MB) and the marginal social benefit ...

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Private vs. Social BenefitsThe graph shows the marginal benefit (MB) and the marginal social benefit ...

Private vs. Social Benefits

The graph shows the marginal benefit (MB) and the marginal social benefit of a college education.

Assume that P1=$12,250, P2=$16,750, P3=$24,750, P4=$26,250, Q1=1,750, Q2=8,250, and Q3=14,750. What is the marginal private benefit of 1,750 people attending college? Marginal social benefit? Marginal external benefit?

▸ $12,250, $16,750, $4,500

▸ $16,750, $26,250, $9,500

▸ $24,750, $26,250, $4,500

▸ $26,250, $8,250, $9,500

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

Read 66 times

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