Figure 4-20
Figure 4-20 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 4-20.Why is there a deadweight loss?
A) because the marginal private benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost
B) because the marginal private cost for each additional unit between Q₁ and Q₂ exceeds the marginal private benefit
C) because the marginal social cost for each additional unit between Q₁ and Q₂ exceeds the marginal social benefit
D) because the marginal social benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost

Question

Figure 4-20
  Figure 4-20 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 4-20.Why is there a deadweight loss?
A) because the marginal private benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost 
B) because the marginal private cost for each additional unit between Q₁ and Q₂ exceeds the marginal private benefit 
C) because the marginal social cost for each additional unit between Q₁ and Q₂ exceeds the marginal social benefit 
D) because the marginal social benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost

Quizplus · Accepted Answer

The Answer of Figure 4-20
  Figure 4-20 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 4-20.Why is there a deadweight loss?
A) because the marginal private benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost 
B) because the marginal private cost for each additional unit between Q₁ and Q₂ exceeds the marginal private benefit 
C) because the marginal social cost for each additional unit between Q₁ and Q₂ exceeds the marginal social benefit 
D) because the marginal social benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost

Figure 4-20 Figure 4-20 Shows the Market for Measles Vaccinations