This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease.
In this graph MB1 measures ___ and MB2 measures ____

Question

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. 
In this graph MB1 measures ___ and MB2 measures ____

Quizplus · Accepted Answer

The graph shows three lines: marginal cost (MC), marginal private benefit (MB1), and marginal social benefit (MB2). MB1 measures the private demand, meaning the benefit that individuals who receive immunization receive directly (such as reduced likelihood of getting sick). MB2 measures the social demand, meaning the total benefit to society (such as reduced transmission of the disease to others who may not be vaccinated). As such, the best choice is C, where MB1 measures private demand and MB2 measures social demand.

This Graph Illustrates the Marginal Cost,marginal Private Benefit,and Marginal Social