-The Table Above Provides Information About the Marginal Private Benefit

Multiple Choice

-The table above provides information about the marginal private benefit for education. The marginal private cost, which also equals the marginal social cost, of educating a student is $16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to $12,000 per student year and does not change as more students are educated. What is the efficient amount of education?

A) 40,000 student-years
B) 60,000 student-years
C) 80,000 student-years
D) 100,000 student-years