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 efficient 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 efficient equilibrium quantity is ________ thousand vaccinations.

Quizplus · Accepted Answer

The efficient equilibrium quantity is the point where the marginal social benefit (MSB) intersects with the marginal cost (MC) curve. This occurs at 600 thousand vaccinations. At this quantity, the marginal social benefit equals the marginal cost, maximizing the overall benefit to society. Any quantity below 600 would result in a lower benefit to society, while any quantity above would result in a cost exceeding the benefit. Therefore, 600 thousand vaccinations is the best choice.

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