If the private benefit of getting a flu shot for a person is less than the social benefit, the market quantity will be greater than the efficient quantity.

Question

Quizplus · Accepted Answer

If the private benefit is less than the social benefit, then the individual is not considering all of the positive externalities (such as not spreading the flu to others) that come with getting a flu shot. This means that the individual may be less likely to get a flu shot, which would result in a market quantity that is lower than the efficient quantity.

If the Private Benefit of Getting a Flu Shot for a Person