100,000 - P 2. (6 marks) The demand for education in the market is given by D(p) where D (p) is the number of degrees. (a) (2 marks) If the market is competitive where the cost to each provider of a degree is $10,000, then what is the equilibrium number of degrees and the equilibrium price? (b) (2 marks) Suppose that there is external benefit of $10,000 per degree. What is the efficient number of degrees? (c) (2 marks) Draw a diagram with relevant marginal values and marginal costs showing the competitive outcome, the efficient outcome, and the lost surplus from a competitive market. Label the relevant curves and the relevant outcomes.