1. Suppose that the marginal private cost of providing higher education fornstudents is given byMPC(n)=nand that the marginal private benefit schedule is given byMPB(n)= 200-n(ie, benefits decline with thenumber of students, presumably because additional students are less qualified and derive lower return from beingeducated). Imagine though that people with college education are more likely to vote and volunteer. Assume(on faith) that these behaviors benefit everyone. The additional social benefit from these activities is valued at20perpersonwithcollegeeducation.
   1. Plotagraphshowing privatemarginalbenefit, privatemarginalcostandsocial marginalbenefit.
   2. Find the price and quantity that correspond to the private competitive equilibrium (i.e.,with no interventionof anykind).
   3. Find the socially efficient quantity and the deadweight loss from being at the private competitive equilibriuminstead.
   4. Whatvalueofamonetarysubsidy toeducationwould implementtheefficient solution?