Question: The table below shows cost data for producing different amounts of higher education. The market for higher education produces positive externalities in the form of
The table below shows cost data for producing different amounts of higher education. The market for higher education produces positive externalities in the form of more informed voters and higher rates of technological growth. Use the given information to answer the questions below.
tablePriceSupply,Private Demand,Social Demandin $Quantity Supplied,Quantity Demanded,Quantity Demanded
How much higher education would we expect to be produced in the free market?
What is the socially optimal output of higher education?
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