What is the efficient number of students? If colleges are private (no government involvement), how many people
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What is the efficient number of students? If colleges are private (no government involvement), how many people enroll, what is the tuition, and what is the deadweight loss?
Figure 1 shows the marginal private benefit from college education. The marginal cost of a college education is a constant $6,000 a year. The marginal external benefit from a college education is a constant $4,000 per student per year.
Figure 1
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