The graph shows the demand for university education. The marginal cost of educating a student is a constant $6,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are private and the government offers vouchers to those who enroll, calculate the value of the voucher that will achieve the efficient number of students. ... Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students that shows the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ a student. >>> Remember that the price given on the y-axis is in thousands of dollars. 10 9- 8- 7- 6- 5- 4- 3- 2 1- Price and cost (thousands of dollars per student per yea 0 S-MC 10 20 30 40 50 Students (thousands per year) >>> Draw only the objects specified in the question. D-MB 60

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The graph shows the demand for university education. The marginal cost of educating a student is
a constant $6,000 a year and education creates an external benefit of a constant $2,000 per
student per year.
If all universities are private and the government offers vouchers to those who enroll, calculate the
value of the voucher that will achieve the efficient number of students.
Draw the marginal social benefit curve. Label it MSB.
Draw an arrow at the efficient number of students that shows the value of the voucher that achieves
the efficient number of students.
The value of the voucher that achieves the efficient number of students is $
>>> Remember that the price given on the y-axis is in thousands of dollars.
a student.
C
10-
9-
8-
7-
6-
5-
4
3-
2-
1
0-
Price and cost (thousands of dollars per student per yea
0
10
S=MC
30
40
50
20
Students (thousands per year)
>>> Draw only the objects specified in the question.
D=MB
60
Transcribed Image Text:The graph shows the demand for university education. The marginal cost of educating a student is a constant $6,000 a year and education creates an external benefit of a constant $2,000 per student per year. If all universities are private and the government offers vouchers to those who enroll, calculate the value of the voucher that will achieve the efficient number of students. Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students that shows the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ >>> Remember that the price given on the y-axis is in thousands of dollars. a student. C 10- 9- 8- 7- 6- 5- 4 3- 2- 1 0- Price and cost (thousands of dollars per student per yea 0 10 S=MC 30 40 50 20 Students (thousands per year) >>> Draw only the objects specified in the question. D=MB 60
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