If farmers decide individually whether or not to vaccinate their cattle against mad cow disease, which of the following is true?
A)The equilibrium quantity is too low for efficiency.
B)The equilibrium price and quantity are too high for efficiency.
C)The equilibrium price is efficient.
D)The equilibrium quantity is too high for efficiency.
E)The equilibrium price and quantity are efficient.

Question

Quizplus · Accepted Answer

When farmers decide individually, they may not consider the positive externalities of vaccinating their cattle, leading to under-vaccination and an equilibrium quantity that is too low for efficiency.

If Farmers Decide Individually Whether or Not to Vaccinate Their