-Vaccinations provide both private benefits and external benefits. The table above gives information on the marginal private benefit and marginal external benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations the government could provide a subsidy of
A) $4 per vaccination.
B) $3 per vaccination.
C) $1 per vaccination.
D) $2 per vaccination

Question

-Vaccinations provide both private benefits and external benefits. The table above gives information on the marginal private benefit and marginal external benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations the government could provide a subsidy of
A) $4 per vaccination. 
B) $3 per vaccination. 
C) $1 per vaccination. 
D) $2 per vaccination

Quizplus · Accepted Answer

The Answer of 
-Vaccinations provide both private benefits and external benefits. The table above gives information on the marginal private benefit and marginal external benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations the government could provide a subsidy of
A) $4 per vaccination. 
B) $3 per vaccination. 
C) $1 per vaccination. 
D) $2 per vaccination

-Vaccinations Provide Both Private Benefits and External Benefits