Figure 7-1

Figure 7-1 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 7-1.At the efficient equilibrium,

Question

Figure 7-1
  
Figure 7-1 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 7-1.At the efficient equilibrium,

Quizplus · Accepted Answer

At the efficient equilibrium, where the marginal social benefit equals the marginal private cost, economic surplus is maximized. This is because resources are allocated efficiently, and both consumers and producers are receiving the maximum benefit possible. Any other point in the market would result in a decrease in economic surplus.

Figure 7-1 Figure 7-1 Represents the Market for Vaccinations. Vaccinations Are Considered