If all colleges are private and the market for education is competitive, calculate the number of students,
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If all colleges are private and the market for education is competitive, calculate the number of students, the tuition, and the deadweight loss.
The marginal cost of educating a student is a constant $4,000 a year and education creates an external benefit of a constant $2,000 per student per year.
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Finding Equilibrium in a Competitive Private College Market with Externalities Since all colleges are private and theres no government intervention the market will reach equilibrium at the point where ...View the full answer
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