The price of antibiotics sends the wrong signal because it includes the:
A) social cost but not the private cost.
B) private cost but not the external cost.
C) external cost but not the private cost.
D) external cost but not the social cost.

Question

Quizplus · Accepted Answer

The price of antibiotics includes the private cost, which is the cost incurred by the manufacturer for producing and distributing the antibiotics. However, it does not include the external cost, which is the cost incurred by society due to the development of antibiotic resistance, such as increased healthcare spending and loss of productivity. This sends the wrong signal as the price does not reflect the true cost of antibiotic use and may lead to overconsumption and misuse of antibiotics.

The Price of Antibiotics Sends the Wrong Signal Because It