Use the table below to answer the following questions.
Table 15.3.1
-Refer to Table 15.3.1.The table shows marginal private benefit and the marginal social benefit from flu vaccinations and the marginal social cost of vaccination production.If production is left to the private market,then at the profit-maximizing output level,marginal
A)social cost equals marginal private benefit.
B)private cost is less than marginal private benefit.
C)social cost is less than marginal private benefit.
D)social cost is greater than marginal private benefit.
E)social benefit is less than marginal private benefit.

Question

Use the table below to answer the following questions.
Table 15.3.1 
-Refer to Table 15.3.1.The table shows marginal private benefit and the marginal social benefit from flu vaccinations and the marginal social cost of vaccination production.If production is left to the private market,then at the profit-maximizing output level,marginal
A)social cost equals marginal private benefit. 
B)private cost is less than marginal private benefit. 
C)social cost is less than marginal private benefit. 
D)social cost is greater than marginal private benefit. 
E)social benefit is less than marginal private benefit.

Quizplus · Accepted Answer

In a private market, firms produce at a level where marginal private benefit equals marginal social cost, aiming to maximize profit. They do not account for the marginal social benefit, which can be higher due to positive externalities like reduced transmission of the flu.

Use the Table Below to Answer the Following Questions