Multiple Choice
Use the figure below to answer the following questions. Figure 15.3.3
-Refer to Figure 15.3.3.The figure shows the marginal private benefit and marginal social cost of a university education.If society's external benefit from university graduates is $10,000 each,then the
A) marginal social cost curve lies $10,000 to the left of the private marginal benefit curve.
B) marginal social cost curve lies $10,000 to the right of the private marginal benefit curve.
C) marginal social benefit curve lies $10,000 below the private marginal benefit curve.
D) marginal social benefit curve lies $10,000 above the private marginal benefit curve.
E) marginal social benefit curve is horizontal.
Correct Answer:

Verified
Correct Answer:
Verified
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