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.The efficient equilibrium price is

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.The efficient equilibrium price is

Quizplus · Accepted Answer

The efficient equilibrium occurs where the marginal social benefit (MSB) intersects with the supply curve, which is at a price of $50. At this price, both the marginal private benefit (MPB) and MSB are equal to the marginal cost (MC) of producing vaccinations, resulting in the most efficient allocation of resources. Any price above $50 would result in a lower quantity demanded and a deadweight loss, while a price below $50 would result in excess demand and a shortage in vaccinations.

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