The Privately Owned School System in Smalltown Has a Virtually

Multiple Choice

The privately owned school system in Smalltown has a virtually unlimited capacity.It accepts all applicants and operates on both tuition and private donations.Although every resident places value on having an educated community,the school's revenues have suffered lately due to a large decline in private donations from the elderly population.If the private market quantity of education is below the socially desirable quantity,how can Smalltown remedy its problem

A) by having the local government tax local citizens in order to subsidize education
B) by increasing tuition to compensate for the decrease in donations
C) by increasing teacher wages
D) by lowering enrolment