Solution for QID #2929: The table shows the marginal benefit schedule from a college | StudyHelpMe

The table shows the marginal benefit schedule from a college education. The marginal cost of educating a college student is $3,000 a year. The marginal external benefit from a college education is a constant $2,000 per student per year. There are no public colleges. If the government offers vouchers to students, what is the value of the voucher that will encourage the efficient number of students to enroll? How many students will enroll considering the value of the voucher?   Students (millions per year) Marginal Benefit (dollars per student per year) 1 5,000 2 3,000 3 2,000 4 1,500 5 1,200 6 1,000 7 800 8 500