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If the government provides public universities what tuition

Question: Use the following figure, which shows the demand for university education, to work.

The marginal cost is a constant $6,000 per student per year. The marginal external benefit from a university education is a constant $4,000 per student per year.

If the government provides public universities, what tuition will achieve the efficient number of students? How much will taxpayers have to pay?

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Microeconomics: If the government provides public universities what tuition

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