-The figure above shows the marginal social costs (MSC) , marginal private benefits (MB) , and marginal social benefits (MSB) of college education in Inland. If Inland's government provides a voucher per student equal to the marginal external benefit of college education, then ________ million students will attend college, and colleges will collect ________ per student from the voucher.

Question

Quizplus · Accepted Answer

The voucher should equal the marginal external benefit, which is the difference between MSB and MB at the socially optimal quantity. At 0.8 million students, this difference is $2,000.

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