Figure 5-2
Figure 5-2 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-2.At the efficient equilibrium

Question

Figure 5-2
  Figure 5-2 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-2.At the efficient equilibrium

Quizplus · Accepted Answer

At the efficient equilibrium, the marginal social benefit (MSB) intersects the marginal cost (MC) curve at point E, which maximizes economic surplus. Therefore, A is the correct choice as economic surplus is maximized.

Figure 5-2 Figure 5-2 Represents the Market for Vaccinations. Vaccinations