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Explain subsidy and the amount of tax revenue

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Reference no: EM132950302

Suppose a positive externality is associated with college enrollment. Assume that college instruction is sold in a competitive and that the marginal social cost of providing it increases with enrollment. show how a corrective subsidy to college students will increase the market price of instruction. show the net gain in well-being possible from the subsidy and the amount of tax revenue to finance its cost on your explanation

Reference no: EM132950302

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