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Question: consider the market for education the marginal social cost of...

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Consider the market for education. The marginal social cost of education (MSC) and the private benefit of education (MPB) are given by the following equations where Q is the n units of education provided per year. MSC 10 + Q MPB 100-Q You are also told that each unit of education provides an external benefit to society of $20 per unit. This external benefit is currently not being internalized in the market.   

  a) Given the MSC and MPB is curves, what is the current number of education uni produced by the market?

b) Is the current level of market production for education the socially optimal amount being education? Explain your answer. What is the socially optimal amount of education?

c) What is the value of consumer surplus (CS) and the value of producer surplus (PS) of the current level of production? Draw a diagram illustrating each of these concepts in the market for education.

d) Given the market level of production, what is the deadweight loss in this market?

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