The table below describes the market for higher education. Higher education confers positive externalities on society, and so the private+social marginal benefits are higher than the private marginal benefits. Quantity 10,000 11,000 12,000 13,000 14,000 Calculate the value of the subsidy that society would need to allocate to higher education in order to achieve the social equilibrium. Express your answer without units (i.e., if your answer is "$500", type "500" in the answer box). Private marginal benefits $80,000 $75,000 $70,000 $65,000 $60,000 A Private+ social marginal benefits $90,000 $85,000 $80,000 $75,000 $70,000 Marginal costs $70,000 $75,000 $80,000 $85,000 $90,000

The table below describes the market for higher education. Higher education confers positive externalities on society, and so the private+social marginal benefits are higher than the private marginal benefits. Quantity 10,000 11,000 12,000 13,000 14,000 Calculate the value of the subsidy that society would need to allocate to higher education in order to achieve the social equilibrium. Express your answer without units (i.e., if your answer is "$500", type "500" in the answer box). Private marginal benefits $80,000 $75,000 $70,000 $65,000 $60,000 A Private+ social marginal benefits $90,000 $85,000 $80,000 $75,000 $70,000 Marginal costs $70,000 $75,000 $80,000 $85,000 $90,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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