What is the cost to taxpayers

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The marginal cost of educating a college student online is $3,000 a year. Table 1 shows the marginal private benefit schedule from a college education. The marginal external benefit is 50 percent of the marginal private benefit.
If the government subsidizes colleges so that the efficient number of students will enroll, what is the cost to taxpayers?

Reference no: EM131298346

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