At the current level of annual supply of inoculations against polio, the marginal external benefit of an inoculation is zero.To achieve efficiency, a corrective subsidy must be provided to those being inoculated.

Question

Quizplus · Accepted Answer

The marginal external benefit being zero implies that the social benefit of additional inoculations is fully captured by the private benefit, meaning there's no additional societal benefit to subsidize for. Efficiency is already achieved without a subsidy.

At the Current Level of Annual Supply of Inoculations Against