Multiple Choice
Figure 11-8
Figure 11-8 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 11-8.Why is there a deadweight loss?
A) Because the marginal private benefit for each additional unit between Q1 and Q2 exceeds the marginal cost.
B) Because the marginal private cost for each additional unit between Q1 and Q2 exceeds the marginal private benefit.
C) Because the marginal social cost for each additional unit between Q1 and Q2 exceeds the marginal social benefit.
D) Because the marginal social benefit for each additional unit between Q1 and Q2 exceeds the marginal cost.
Correct Answer:
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