8. The table shows the marginal private benefit schedule from a college education. The marginal cost of educating a college student online is $3,000 a year. The marginal external benefit from a college education is 50 percent of the marginal private benefit. With no government involvement in college education, million students enroll and tuition is per student per year. The deadweight loss created is $ million. Students (millions per year) 1 2 o/A /c Marginal private benefit (dollars per student per year) 6,000 5,000 4,000 3,000 2,000 1,000

8. The table shows the marginal private benefit schedule from a college education. The marginal cost of educating a college student online is $3,000 a year. The marginal external benefit from a college education is 50 percent of the marginal private benefit. With no government involvement in college education, million students enroll and tuition is per student per year. The deadweight loss created is $ million. Students (millions per year) 1 2 o/A /c Marginal private benefit (dollars per student per year) 6,000 5,000 4,000 3,000 2,000 1,000

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 1PA

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