-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 university education in Inland. Suppose Inland's government is considering subsidising private universities to ensure the efficient level of enrolment. What should be the amount of the subsidy (if any) ?

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