Tom and Jacob

Tom and jacob are college students. each of them will probably get married later and have two or three children. each knows that if he studies more in college, he’ll get a better job and earn more than if he doesn’t study. earning more means the ability to spend more on their future families – things like orthodontia, nice clothes, admission to an expensive college, and travel. tom thinks about the potential benefit to his potential children when he decides how much studying to do. jacob doesn’t.a. what type of externality arises from studying?b. draw a graph showing this externality contrasting the responses of tom and jacob. who studies more? who acts more efficiently? why?4.9 tom and jacob are college students. each of them will probably get married later and have two or three children. each knows that if he studies more in college, he’ll get a better job and earn…

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