The marginal cost of educating a college student online is $3,000 a year. The table shows the marginal private benefit schedule of a college education. The marginal external benefit is 50 percent of the marginal private benefit. If the government offers vouchers to online students so that the efficient number of students will enroll, what is the value of the voucher and how many students will enroll? The number of students enrolled is and the value of the voucher is $ million students per student.

The marginal cost of educating a college student online is $3,000 a year. The table shows the marginal private benefit schedule of a college education. The marginal external benefit is 50 percent of the marginal private benefit. If the government offers vouchers to online students so that the efficient number of students will enroll, what is the value of the voucher and how many students will enroll? The number of students enrolled is and the value of the voucher is $ million students per student.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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