What is the value of the voucher

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Reference no: EM131298262

The marginal cost of educating a college student is $5,000 a year. Table 3 shows the marginal benefit schedule from a college education. The marginal external benefit from a college education is a constant $2,000 per student per year. There are no public colleges.

If the government offers vouchers to students, what is the value of the voucher that will encourage the efficient number of students to enroll?

Reference no: EM131298262

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