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Assume that that students and nonstudents have revealed their group demands for junior college education, a public good, as follows: Q = 1,500 - 0

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Assume that that students and nonstudents have revealed their group demands for junior college education, a public good, as follows: Q = 1,500 - 0.25P, (Student demand) Q = 4,000 - P, (Nonstudent demand) where Q is the number of students educated per year and P is the price of tuition at the local 2 year junior college. What is the aggregate demand for college education? Assuming, MC = 1,000 + Q, the marginal cost of college education, what is the socially optimal amount of socially optimal amount of publicly-supported college education ?