When a vaccination program generates a positive externality, the:
A)market demand curve is above the marginal social benefit curve.
B)market demand curve is below the marginal social benefit curve.
C)marginal cost of production is below the market demand curve.
D)market will produce more than the efficient level of output.

Question

Quizplus · Accepted Answer

A positive externality means the social benefit is greater than the private benefit, so the marginal social benefit curve is above the market demand curve.

When a Vaccination Program Generates a Positive Externality, The