-The Figure Above Shows the Marginal Social Costs (MSC), Marginal

Multiple Choice

-The figure above shows the marginal social costs (MSC) , marginal private benefits (MB) , and marginal social benefits (MSB) of college education in Inland. Suppose Inland's government is considering subsidizing private colleges to ensure the efficient level of enrollment. What should be the amount of the subsidy (if any) ?

A) The government should not subsidize private colleges.
B) $2,000 per student per year
C) $1,000 per student per year
D) $4,000 per student per year