Mara gets a free flu shot from her campus clinic. As a result, she and her roommates avoid the flu all season. Which statement is TRUE?
A) Flu shots create an external cost.
B) If flu shots were not free, the number of people getting them would be larger than what is socially optimal.
C) The externality generated by flu shots is more similar to that provided by landscaping than the externality generated by smoking.
D) The externality is created by producers for producers.
Correct Answer:
Verified
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