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.The efficient equilibrium price is

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.The efficient equilibrium price is

Quizplus · Accepted Answer

The efficient equilibrium is where the marginal social benefit (MSB) equals the marginal cost (MC) of vaccinations, which is shown as point E on the graph. At this point, the quantity of vaccinations is Q*, which is where the demand curve intersects with the MC curve. The efficient equilibrium price is the price at point E, which is equal to $50. Therefore, choice B is the correct answer.

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