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 quantity is ________ thousand vaccinations.

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 quantity is ________ thousand vaccinations.

Quizplus · Accepted Answer

The efficient equilibrium quantity is where the marginal social benefit equals the marginal cost, which is at 600 thousand vaccinations. At this quantity, the total surplus (the difference between the total social benefit and the total cost) is maximized. Any quantity below or above 600 thousand vaccinations would result in a lower total surplus. Therefore, C is the best choice.

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