Figure 7-2 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 7-2.Marginal social benefit is represented by which curve?

Question

Quizplus · Accepted Answer

Marginal social benefit is represented by the D2 curve, which takes into account not only the private benefit but also the positive externalities (benefits to society as a whole) that come from increased vaccination rates. The D1 curve represents only the marginal private benefit, and the supply curve represents the marginal cost of producing vaccinations.

Figure 7-2 Represents the Market for Vaccinations