-The Table Above Provides Information About the Marginal Private Benefit

Multiple Choice

-The table above provides information about the marginal private benefit of 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. If the market for education is competitive and unregulated, the equilibrium quantity of education will be _______ and the tuition will be _______.

A) 20,000 student- years; $20,000
B) 60,000 student- years; $12,000
C) 80,000 student- years; $8,000
D) 40,000 student- years; $16,000