If the government offers vouchers to students, what is the value of the voucher that will encourage the efficient number of students to enroll?

The marginal cost of educating a college student is $5,000 a year. Table 3 shows the marginal benefit schedule from a college education. The marginal external benefit from a college education is a constant $2,000 per student per year. There are no public colleges.

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TABLE 3 Students (millions per year) 12345678 5 Marginal benefit (dollars per student per year) 5,000 3,000 2,000 1,500 1,200 1,000 800 500