Figure 10-9
-Refer to Figure 10-9, Panel (b) and Panel (c). The overuse of antibiotics leads to the development of antibiotic-resistant diseases. Therefore, the socially optimal quantity of antibiotics is represented by point
A)Q2.
B)Q3.
C)Q4.
D)Q5.

Question

Figure 10-9   
-Refer to Figure 10-9, Panel (b) and Panel (c). The overuse of antibiotics leads to the development of antibiotic-resistant diseases. Therefore, the socially optimal quantity of antibiotics is represented by point
A)Q2. 
B)Q3. 
C)Q4. 
D)Q5.

Quizplus · Accepted Answer

The socially optimal quantity of antibiotics is where the marginal social cost equals the marginal social benefit, which is typically less than the quantity where only private costs and benefits are considered, represented by Q2.