Answer the following question comprehensively showing all working. Provide final answer with explanation and working shown.

Consider the perfectly competitive market for tertiary education. Research has found that countries with higher level of tertiary educated population have lower levels of crime.

1. [10 marks] Draw the market demand and supply for tertiary education, labeling both the market outcome and the socially optimal outcome. Explain your graph.
2. [5 marks] Is the market outcome and the socially optimal outcome the same? Explain your answer.
3. [10 marks] If your answer in part (b) is no, explain two possible solutions for achieving the socially efficient outcome. However, if your answer in part (b) is yes, explain two possible factors that could cause the market outcome to be different from the socially efficient one.