Figure 7-1

Figure 7-1 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 7-1.The efficient equilibrium price is

Question

Figure 7-1
  
Figure 7-1 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 7-1.The efficient equilibrium price is

Quizplus · Accepted Answer

The efficient equilibrium occurs where the marginal social benefit (MSB) intersects with the supply curve, which is at a price of $25 in this case. This is the socially optimal price, where the benefits to society are maximized and there is no deadweight loss. Any price above or below this results in a decrease in total benefits to society. Therefore, the best choice is B, which is the price that leads to the efficient equilibrium.

Figure 7-1 Figure 7-1 Represents the Market for Vaccinations. Vaccinations Are Considered