Sources of externalities associated with education service

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Reference no: EM131097140

a. List four different sources of externalities associated with education service that make it likely that an inefficiently small amount of the service would be provided in competitive equilibrium without gov intervention. Explain why each source you list has that property.

b. Explain how we can tell that the effective government subsidy per student for education service at the private universities with the biggest endowments is larger than the effective subsidy per student for education service at state-owned universities?

Reference no: EM131097140

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