Define marginal cost and marginal benefit. What will be an ...

[ereecah]

Define marginal cost and marginal benefit.
 
  What will be an ideal response?

Question 2

In the figure above, suppose the government provides vouchers worth 15,000 per student per year. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________.
 
  A) exceeds; above the efficient quantity
  B) exceeds; below the efficient quantity
  C) is below; above the efficient quantity
  D) is below; below the efficient quantity
  E) equals; efficient

[amynguyen1221]

Answer to Question 1

Marginal cost is the opportunity cost of an increase in an activity. Marginal benefit is the benefit of an increase in an activity.

Answer to Question 2

E

[ereecah]

TYSM

[jamesnevil303]

Excellent