Solved: What is the efficient number of students if all, Microeconomics

What is the efficient number of students if all

Question: Use the following figure, which shows the demand for university education, to work.

The marginal cost is a constant $6,000 per student per year. The marginal external benefit from a university education is a constant $4,000 per student per year.

What is the efficient number of students? If all universities are private, how many people enroll in university and what is the tuition?

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