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Figure: Market for Vaccines
-(Figure: Market for Vaccines) Refer to the figure. The figure represents the market for vaccines with external benefits. The efficient level of output is ________ vaccines, which is ________ than the market's output.
A) 1,200; greater
B) 1,800; less
C) 2,400; greater
D) 1,800; greater

Question

Use the following to answer questions:
Figure: Market for Vaccines 
-(Figure: Market for Vaccines) Refer to the figure. The figure represents the market for vaccines with external benefits. The efficient level of output is ________ vaccines, which is ________ than the market's output.
A) 1,200; greater 
B) 1,800; less 
C) 2,400; greater 
D) 1,800; greater

Quizplus · Accepted Answer

The efficient level of output for vaccines, considering external benefits, is greater than the market's output because the market fails to account for the positive externalities, leading to underproduction.

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