External Benefits from Education and Deadweight Loss. Using Figure 30.3 on page 670 as a starting point, compute the deadweight loss associated with reaching the market equilibrium at point a rather...

External Benefits from Education and Deadweight Loss. Using Figure 30.3 on page 670 as a starting point, compute the deadweight loss associated with reaching the market equilibrium at point a rather than the socially efficient outcome at point b. Notice that the marginal external benefit is constant at $4 per book, so the gap between the marginal private benefit curve and the marginal social benefit curve is $4.