Solution:-
(A). Tuition is set at $15000,students = 6 million
Now suppose that society gets an external benefit of $5000 for every enrolled student:-
(B), So Social Optimum = 7, when tuition price = 15000
(C). Subsidy needs to be $5000 / student
Suppose the following data represent the market demand for college education: Tuition Enrollment Demanded (per year)...
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