Using the figure above, suppose education is provided by public colleges, where tuition is set at $10,000 a year
When the market is in equilibrium, the marginal social benefit is ________, the marginal cost is ________, and the number of students enrolled is ________. A) $25,000; $25,000; efficient
B) $25,000; $10,000; inefficient
C) $15,000; $25,000; inefficient
D) $15,000; $15,000; efficient
E) $25,000; $15,000; inefficient
A
You might also like to view...
Changes in the federal funds rate:
A) change the long-run expected interest rates in the same direction. B) change the long-run expected interest rates in the opposite direction. C) can change the long-run expected interest rate either in any direction depending on the magnitude of the change in the federal funds rate. D) have no effect on the long-run expected interest rate.
In the scenario above, as a result of increased advertising, Talbot's markup
A) decreases by $100. B) increases by $50. C) increases by $75. D) decreases by $60.