QUESTION 8 Table C (below) shows the schedules for marginal social cost, marginal private benefit, and marginal social benefit of a university education for each student. a) Assuming a competitive free market for private university education (i.e. with no government involvement in university education), how many students are likely to enrol? 1 mark. b) What is likely to be the university fee per student? 1 mark. c) What is the socially efficient enrollment level? 1 mark. d) What is the marginal external benefit per student at the socially efficient enrollment level? 1 mark. e) If the government subsidises universities so that the socially efficient number of students will enrol, what is the amount paid by taxpayers? 1 mark. Table C Studen MSC MB (per MSB ts (per student) (per (millio student) student) ns) 1 $ $6,000 $9,000 3,000 N $ $5,000 $7,500 3,000 W $ $4,000 $6,000 3,000 4 $ $3,000 $4,500 3,000 5 $ $2,000 $3,000 3,000 6 $ $1,000 $1,500 3,000