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Marginal Social Marginal Cost (dollars per Quantity (Number Private Marginal Social of Students) course) Benefit Benefit 60 3,500 70 20 20 120 65 3.625 65

Marginal Social Marginal Cost (dollars per Quantity (Number Private Marginal Social of Students) course) Benefit Benefit 60 3,500 70 20 20 120 65 3.625 65 115 70 3,750 60 110 10 75 3.875 S 105 80 4,000 50 100 85 4,125 45 95 90 4.250 40 90 95 4.375 35 85 100 4.500 30 80 105 4,625 25 75 110 4,750 20 70 The table above gives the marginal social cost (which equals the price), marginal private benefit, and marginal social benefit of students attending Diablo Valley College (DVC) in Concord, California. If the government can set the price per course, in order to have the efficient quantity of students attending DVC, the government should set the price equal to

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