Figure 5-2
Figure 5-2 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-2.Marginal social benefit is represented by which curve?

Question

Figure 5-2
  Figure 5-2 represents the market for vaccinations. Vaccinations are considered a benefit to society, and the figure shows both the marginal private benefit and the marginal social benefit from vaccinations.
-Refer to Figure 5-2.Marginal social benefit is represented by which curve?

Quizplus · Accepted Answer

The marginal social benefit is the sum of the marginal private benefit (shown by curve D1) and any external benefits (which are represented by the vertical gap between D1 and D2). Therefore, the D2 curve represents the marginal social benefit of vaccinations. Curve D2 reflects the total benefit to society from vaccinations, not just the benefit to the individual who receives the vaccination.

Figure 5-2 Figure 5-2 Represents the Market for Vaccinations. Vaccinations