-The table above gives information on the marginal perceived private benefit and marginal social benefit associated with vaccination against varicella (chicken pox) . If the marginal cost of a varicella vaccination is $10, then the unregulated competitive equilibrium will have

Question

Quizplus · Accepted Answer

In an unregulated competitive market, the equilibrium occurs where the marginal perceived private benefit equals the marginal cost. If the marginal cost is $10, we look for the quantity where the marginal perceived private benefit is also $10, which is at 3 million vaccinations.

-The Table Above Gives Information on the Marginal Perceived Private