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Richard estimates that an executive accounting certificate, good for 3 years, would increase his ...

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Richard estimates that an executive accounting certificate, good for 3 years, would increase his ...

Richard estimates that an executive accounting certificate, good for 3 years, would increase his annual salary from $50,000 to $60,000. Tuition for the certificate is $40,000. Richard's boss estimates that with the accounting certificate Richard would create annual marginal external benefits of $15,000 for the company. Which statement is false?
A) Marginal external cost equals zero.
B) Marginal private cost equals $40,000.
C) Marginal social cost equals $40,000.
D) Marginal private benefit equals $60,000.
E) Marginal social benefit equals $75,000.

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Microeconomics for Life: Smart Choices for You

Edition: 2^nd

Author: Cohen

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