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.The market equilibrium quantity is ________ thousand vaccinations.

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.The market equilibrium quantity is ________ thousand vaccinations.

Quizplus · Accepted Answer

The market equilibrium occurs where the marginal private benefit (MPB) intersects with the marginal private cost (MPC). In this case, it occurs at a quantity of 400 thousand vaccinations. This is also the quantity at which the marginal social benefit (MSB) intersects with the MPC. Any quantity below this equilibrium would result in underproduction of vaccinations, while any quantity above this equilibrium would result in overproduction. Therefore, the best choice is B, which represents the market equilibrium quantity.

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