-The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What subsidy per student will the college require to take in the efficient number of students?
A) $2,400
B) $400
C) $2,800
D) $3,400

Question

-The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What subsidy per student will the college require to take in the efficient number of students?
A) $2,400 
B) $400 
C) $2,800 
D) $3,400

Quizplus · Accepted Answer

The subsidy required is the difference between the marginal social benefit and the marginal private benefit, which is $2,400.

-The Table Above Shows the Marginal Private Benefit, Marginal Social