Multiple Choice
The figure above shows the supply curve (S) and the demand curve (D) for university education. The external benefit from university education is $6,000 per student per year and is constant.
-In the figure above, with no government involvement and if the universities are competitive, what is the deadweight loss?
A) $6 billion per year
B) $12 billion per year
C) $4 billion per year
D) Zero
Correct Answer:
Verified
Correct Answer:
Verified
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