Figure 5-1 Figure 5-1 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 5-1.Marginal private benefit is represented by which curve?

Question

Figure 5-1  Figure 5-1 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 5-1.Marginal private benefit is represented by which curve?

Quizplus · Accepted Answer

Marginal private benefit is represented by the demand curve D1, which shows the individual's willingness to pay for each additional vaccination. D2 represents the marginal social benefit, which includes both the individual's willingness to pay and the external benefits vaccinations provide to society as a whole. Supply represents the cost of producing each vaccination. Therefore, only D1 represents the marginal private benefit.

Figure 5-1 Figure 5-1 Represents the Market for Vaccinations