The marginal cost of educating a college student online is $3,000 a year. The table shows the marginal private benefit schedule of a college education. The marginal external benefit is 50 percent of the marginal private benefit. If the government offers vouchers to online students so that the efficient number of students will enroll, what is the value of the voucher and how many students will enroll? The number of students enrolled is million students and the value of the voucher is $ per student Students (millions per year) 1 23 2 4 56 Marginal private benefit (dollars per student per year 6,000 5,000 4,000 3,000 2,000 1,000

The marginal cost of educating a college student online is $3,000 a year. The table shows the marginal private benefit schedule of a college education. The marginal external benefit is 50 percent of the marginal private benefit. If the government offers vouchers to online students so that the efficient number of students will enroll, what is the value of the voucher and how many students will enroll? The number of students enrolled is million students and the value of the voucher is $ per student Students (millions per year) 1 23 2 4 56 Marginal private benefit (dollars per student per year 6,000 5,000 4,000 3,000 2,000 1,000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 44P: In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible...

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