-If the government regulates the market in the above figure in a way to achieve efficiency, then _______ Vaccinations will be produced and consumed.

Question

Quizplus · Accepted Answer

In a scenario where the government intervenes to achieve efficiency in the market for vaccinations, it would aim to produce and consume at the level where the marginal social benefit equals the marginal social cost. Without seeing the figure, a common efficient outcome in public goods like vaccinations is to aim for a quantity that maximizes societal welfare, often higher than the unregulated market outcome due to the positive externalities associated with vaccinations. Assuming choice A (50,000) represents this efficient outcome based on typical economic principles, it would be the correct answer.

-If the Government Regulates the Market in the Above Figure