The graph illustrates the data in the table Price and cost ( dollars per student per year) Remember that the vertical distance between the D = MB and 5000 the MSB curves equals the marginal external benefit, which is $300. 4000- The efficient number of students is 5 million and the number of students enrolled with no government involvement in college education is 4 million. 3000- How do we calculate the deadweight loss when an inefficient number of students is enrolled? 2000- 1800 1500 S-MC 1000- MSB 4 5 D = MB 2 Students (millions per yearThe marginal cost of educating a college student is $1,500 a year, Students Marginal benefit The table shows the marginal benefit schedule of a college education. The (millions per year) (dollars per student per year) marginal external benefit of a college education is a constant $300 per student 5,000 per year. There are no public colleges 3,000 With no government involvement in college education, how many students enroll, 2,000 what is the tuition, and what is the deadweight loss created? 1,500 DO NO UT A W N 1,200 1,000 800 With no government involvement in college education, 4 million students enroll 500 and tuition is $ 1,500 per student per year. The deadweight loss created is $ million