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Use the Figure Below to Answer the Following Questions

Question 31

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Use the figure below to answer the following questions.
Use the figure below to answer the following questions. Figure 16.3.3 -Refer to Figure 16.3.3.The figure shows the marginal private benefit and marginal social cost of a university education.If society's external benefit from university graduates is $10,000 each,then A) a subsidy of $10,000 per student paid to the universities achieves efficiency. B) a tax of $10,000 per student imposed on the universities achieves efficiency. C) 10 million students per year is the efficient number students. D) a subsidy of $20,000 per student paid to the universities achieves efficiency. E) none of the above answers are correct.
Figure 16.3.3
-Refer to Figure 16.3.3.The figure shows the marginal private benefit and marginal social cost of a university education.If society's external benefit from university graduates is $10,000 each,then


A) a subsidy of $10,000 per student paid to the universities achieves efficiency.
B) a tax of $10,000 per student imposed on the universities achieves efficiency.
C) 10 million students per year is the efficient number students.
D) a subsidy of $20,000 per student paid to the universities achieves efficiency.
E) none of the above answers are correct.

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