-The Table Above Shows Costs and Benefits Arising from College

Essay

-The table above shows costs and benefits arising from college education. There is no government involvement and the schools are competitive.
a) Draw the marginal social cost, marginal private benefit, and marginal social benefit curves.
b) How many students are enrolled and what is the tuition?
c) What is the efficient level of enrollment?
d) What is the deadweight loss? Why does it arise?
e) If the government provides the efficient amount of education, how many school places does it offer and what is the tuition? Explain your answer.
f) If the government provides the efficient amount of education, of the tuition paid by a student what does the government pay and what does what a student pay?