Figure 5-1 Figure 5-1 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 5-1.Marginal social benefit is represented by which curve?

Question

Figure 5-1  Figure 5-1 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 5-1.Marginal social benefit is represented by which curve?

Quizplus · Accepted Answer

Marginal social benefit is represented by curve D2 as it takes into account not only the private benefit to the individual receiving vaccination, but also the positive externalities of reducing the spread of disease to others in the population. Curve D1 represents only the marginal private benefit, and the supply curve represents the cost of producing vaccinations.

Figure 5-1 Figure 5-1 Represents the Market for Vaccinations