Use a single well-labeled diagram to illustrate the DWL, if any, associated with an individual deciding on how many years of education (denoted by x) to get. Assume that (i) every year of education gotten has only positive externalities on the society, (ii) the marginal cost curve is horizontal, (iii) the marginal benefit curve is downward sloping, and (iv) the marginal external benefit of getting education falls with additional years of education increases
Use a single well-labeled diagram to illustrate the DWL, if any, associated with an individual deciding on how many years of education (denoted by x) to get. Assume that (i) every year of education gotten has only positive externalities on the society, (ii) the marginal cost curve is horizontal, (iii) the marginal benefit curve is downward sloping, and (iv) the marginal external benefit of getting education falls with additional years of education increases
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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