Figure 18P-3 shows supply and demand for first-aid training, based on private costs and benefits. a. Suppose
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a. Suppose that the external benefit from first-aid training is worth $6. Graph the social benefit curve for first-aid training that accounts for the external benefit.
b. Ignoring the social benefits of training, how many hours of first-aid training will occur?
c. What is the socially optimal quantity of first-aid training?
d. What is the deadweight loss to society when consumers are unable to capture the $6 external benefit they provide from first-aid training? Graph the deadweight loss.
Figure 18P-3:
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