The marginal cost of educating a student is a constant 4000


Question: The table shows the demand for university education.

593_Quantity.png

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 the government decides to subsidize private universities, what subsidy will achieve the efficient number of students?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: The marginal cost of educating a student is a constant 4000
Reference No:- TGS02910452

Expected delivery within 24 Hours