If a positive externality results from higher education, _____.
A)the marginal benefit students receive from education equals the marginal social benefit
B)the marginal benefit students receive from education is less than the marginal social benefit
C)the private cost of education exceeds the social cost
D)the marginal benefit students receive from education exceeds the marginal social benefit
E)the private cost of education is less than the social cost

Question

Quizplus · Accepted Answer

Positive externality means that the social benefit is greater than the private benefit. Therefore, the marginal benefit students receive from education is less than the marginal social benefit.

If a Positive Externality Results from Higher Education, _____