10.2 Positive Externalities: Education

MyEconLab Concept Video

Education benefits the students who receive it, and the many other people with whom a well-educated person interacts. To study the economics of education, we must distinguish between its private benefits and its social benefits.

Private Benefits and Social Benefits

A private benefit is a benefit that the consumer of a good or service receives. The marginal private benefit (MB) is the benefit from an additional unit of a good or service that the consumer of that good or service receives.

An external benefit is a benefit from a good or service ...

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