In the figure above, suppose a subsidy is provided to private colleges. What amount of subsidy will ensure the efficient number of students?
A) $10,000
B) $25,000
C) $15,000
D) $5,000
E) $20,000
C
You might also like to view...
Natural monopolies are the natural result of:
A. competition in markets where economies of scale exist over the relevant range of output. B. geographical happenstance. C. fierce competition from firms in a market. D. government regulations intended to encourage competition.
A good economic theory: a. includes every detail that affects the economic behavior of interest
b. relies on simplifying assumptions in order to explain economic behavior. c. does not rely on simplifying assumptions. d. is impossible to achieve because of the difficulty of conducting controlled experiments.
Marginal, average, and total figures are bound together. If any two are known, the third can be calculated
a. True b. False Indicate whether the statement is true or false
If a price ceiling of $8 were placed in the market in the graph shown:
A. some surplus is transferred from consumer to producer. B. all consumers are made better off. C. some surplus is transferred from producer to consumer. D. all producers are made better off.