If once vaccinated, a person cannot catch a cold or give a cold to someone else, the marginal social benefit resulting from consumption of the vaccine:
A) exceeds the marginal benefit received by consumers of the vaccine.
B) equals the marginal social cost of producing the vaccine in a competitive equilibrium.
C) equals the marginal benefit received by consumers of the vaccine in a competitive equilibrium.
D) is less than the marginal benefit received by consumers of the vaccine.

Question

Quizplus · Accepted Answer

The marginal social benefit exceeds the marginal benefit received by consumers because the vaccine not only protects the individual but also prevents them from spreading the cold to others, creating a positive externality.

If Once Vaccinated, a Person Cannot Catch a Cold or Give