If all universities are private and the government offers


Question: The table shows the demand for university education.

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The marginal cost of educating a student is a constant $4,000 a year and education creates an external benefit of a constant $2,000 per student per year.

If all universities are private and the government offers vouchers to those who enroll, calculate the value of the voucher that will achieve the efficient number of students.

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Microeconomics: If all universities are private and the government offers
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