The accompanying graph shows the market for education, where MC represents marginal costs of education, MB_private is the private marginal benefits of education, and MB_social, is the social demand curve and represents the social marginal benefits of education. Given the situation depicted in the graph,

a. Without intervention, the market will generate the socially optimal level of education. 

b. Without intervention, the market will generate too great a level of education from a social efficiency perspective. 

c. Without intervention, the market will generate too low a level of education from a social efficiency perspective. 

d. Without intervention, the market won't generate any education production.

Transcribed Image Text:

69 00 8 MBprivate -MB social 10 12 14 16 Quantity (years of education) MC 18 20