If tuition at a college is $30,000 and the external benefit of graduating from this college is $10,000, then
i. in the absence of any government intervention, the number of students graduating is less than the efficient number.
ii. the government could increase the number of graduates by giving the college a $10,000 subsidy per student.
iii. the government could increase the number of graduates by giving the students $10,000 vouchers.
A) i only
B) i and ii
C) i and iii
D) ii and iii
E) i, ii, and iii
E
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Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would
A) decrease by 52 oz. B) decrease by 36 oz. C) increase by 36 oz. D) increase by 52 oz.
Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?
A) an amount equal to the area A + B + C + D + H + G B) an amount equal to the area A + B + C + D C) an amount equal to the area E + F D) an amount equal to the area A + C + H