The marginal cost of educating a college student is 500000

Reference no: EM13377330

The marginal cost of educating a college student is $5,000.00 a year. The table below shows the marginal private benefit schedule from a college education. The marginal external benefit for college education is $2,000.00 per student per year.

Students Marginal Private Benefit

(millions per year) (dollars per student per year)

1 5,000

2 3,000

3 2,000

4 1,500

5 1,200

6 1,000

7 800

8 500

a. With no public colleges and no government involvement in college education, how many students will enroll and what is the tuition?

b. If the government subsidizes private colleges and sets the subsidy so that the efficient number of students will enroll in college, what is the subsidy per student? How many students will enroll?

Reference no: EM13377330

Questions Cloud

Wh of the following statements is correcta : which of the following statements is correct?a managerial decisions are affected primarily by microeconomic

The grand theater is a movie house in a medium-sized : the grand theater is a movie house in a medium-sized college town. this theater shows unusual films and treats

What are the three macroeconomic goals find an article that : what are the three macroeconomic goals? find an article that shows a connection between a current event and two of the

1 for each of the following utility functions draw the : 1. for each of the following utility functions draw the three indierence curves that correspond to the three stated

The marginal cost of educating a college student is 500000 : the marginal cost of educating a college student is 5000.00 a year. the table below shows the marginal private benefit

The table below illustrates the market for internet : the table below illustrates the market for internet services. use a demand-supplygraph to answer the following

1 when the government increases taxes to provide : 1. when the government increases taxes to provide traditional public goods such national security there tends to bea.

Graph long-run equilibrium to include mc ac d and mr to : graph long-run equilibrium to include mc ac d and mr to answers for questions 1 through 41. perfect competition2.

1 all of the questions in this part refer to the market for : 1 all of the questions in this part refer to the market for jelly doughnuts. all questions are concerned only with the

User Account

All Pages