-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox) . If the marginal cost of a varicella vaccination is $10, then the unregulated competitive equilibrium will have

Question

Quizplus · Accepted Answer

In an unregulated competitive market, the equilibrium quantity is determined where the marginal private benefit equals the marginal cost. If the marginal cost is $10, we look for the quantity where the marginal private benefit is also $10, which is at 3 million vaccinations.

-The Table Above Gives Information on the Perceived Marginal (Private)