The graph shows the marginal private benefit from trade school education. The marginal cost of this education is a constant $4,000 a year. The marginal external benefit from a trade school education is $2,000 per student per year. Suppose the government decides to provide public trade schools. Draw the marginal cost curve. Label it MC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that colleges charge is $ per student. per student. The amount paid by taxpayers is $ >>> Remember that the price on the y-axis is in thousands of dollars. 14- 12- 10- 8- 6- 4- 2- Price and cost (thousands of dollars) o+ 0 D=MB 60 70 10 Q Q 20 30 40 50 Students (thousands per year) >>> Draw only the objects specified in the question.

The graph shows the marginal private benefit from trade school education. The marginal cost of this education is a constant $4,000 a year. The marginal external benefit from a trade school education is $2,000 per student per year. Suppose the government decides to provide public trade schools. Draw the marginal cost curve. Label it MC. Draw the marginal social benefit curve. Label it MSB. Draw a line that shows the tuition that schools charge to achieve the efficient number of students. Label it Tuition. The tuition that colleges charge is $ per student. per student. The amount paid by taxpayers is $ >>> Remember that the price on the y-axis is in thousands of dollars. 14- 12- 10- 8- 6- 4- 2- Price and cost (thousands of dollars) o+ 0 D=MB 60 70 10 Q Q 20 30 40 50 Students (thousands per year) >>> Draw only the objects specified in the question.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA: Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on...

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