Figure 5-1
Figure 5-1 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 5-1.The efficient equilibrium price is

Question

Figure 5-1
  Figure 5-1 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 5-1.The efficient equilibrium price is

Quizplus · Accepted Answer

The efficient equilibrium occurs where the marginal social benefit (MSB) intersects with the marginal private cost (MPC). This occurs at a price of $25, as shown by the intersection point on the graph. At this price, the quantity demanded is Q1. Any price above or below $25 would result in a deadweight loss, indicating that the market is inefficient. Therefore, the best choice is to set the price at $25 to achieve the efficient outcome.

Figure 5-1 Figure 5-1 Represents the Market for Vaccinations. Vaccinations