Suppose that the private cost of using antibiotics is less than its social cost-we would then expect people to ________ antibiotics, leading to an ________ market outcome.
A) overuse; inefficient
B) underuse; inefficient
C) overuse; efficient
D) make efficient use of; equilibrium

Question

Quizplus · Accepted Answer

When the private cost of using antibiotics is less than its social cost, individuals will overuse antibiotics as they do not bear the full cost of their actions. This leads to an inefficient market outcome where too many antibiotics are used, increasing the likelihood of antibiotic resistance and other negative externalities. Therefore, the best choice is A, where people overuse antibiotics, leading to an inefficient market outcome.

Suppose That the Private Cost of Using Antibiotics Is Less