-The figure above shows the marginal social costs (MSC) , marginal private benefits (MB) , and marginal social benefits (MSB) of university education in Inland. Suppose Inland's government is considering subsidising private universities to ensure the efficient level of enrolment. What should be the amount of the subsidy (if any) ?

Question

Quizplus · Accepted Answer

The subsidy should equal the difference between the marginal social benefit (MSB) and the marginal private benefit (MB) to achieve the efficient level of enrolment, which is $2,000 per student per year.

-The Figure Above Shows the Marginal Social Costs (MSC), Marginal