If the marginal private benefit of attending college for Shelly is $40,000 and the marginal external benefit is $15,000, she will attend university if the cost of attendance is no more than
A) $55,000.
B) $45,000.
C) $40,000.
D) $15,000.
E) $25,000.

Question

Quizplus · Accepted Answer

Shelly will attend university if the marginal private benefit ($40,000) is greater than or equal to the cost of attendance. The marginal external benefit does not affect her personal decision.

If the Marginal Private Benefit of Attending College for Shelly