Examine Figure 37.1. What is the tuition charged to the student in a market that has a subsidy equal to the external benefit? Figure 37.1 

Present value is

A) the value of a future amount expressed in today's dollars. B) the value of a dollar received a year from now, expressed in terms of its future value. C) the inverse of the interest rate. D) the nominal value instead of the real value of something.

An economy is operating with optimum efficiency if

A. the price of the product is greater than marginal cost. B. the production of more of commodity A entails the production of less of commodity B. C. marginal cost of output is greater than marginal utility of output. D. an increase in output would result in a decrease in average cost per unit.