Figure 5-10 Chicken pox vaccinations for toddlers benefit society by protecting young children and by preventing an epidemic of the disease. Thus, the marginal social benefits of chicken pox vaccinations exceed the marginal private benefit for any quantity of vaccinations as illustrated in Figure 5-10.
-Refer to Figure 5-10. What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Question

Figure 5-10  Chicken pox vaccinations for toddlers benefit society by protecting young children and by preventing an epidemic of the disease. Thus, the marginal social benefits of chicken pox vaccinations exceed the marginal private benefit for any quantity of vaccinations as illustrated in Figure 5-10.
-Refer to Figure 5-10. What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Quizplus · Accepted Answer

The net gain to society is the difference between the total benefits and the total costs. The total benefits are represented by the area of the triangle Q_FFGQ_E, and the total costs are represented by the area of the triangle EFH. Therefore, the net gain to society is equal to the area of EFH.

Figure 5-10 Chicken Pox Vaccinations for Toddlers Benefit Society