If the government provides healthcare to achieve the efficient coverage, how many families are covered and how
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If the government provides healthcare to achieve the efficient coverage, how many families are covered and how much must taxpayers pay?
Use the following figure, which shows the marginal benefit from health insurance and the willingness and ability to pay for it, to work Problems 7 to 10.
The marginal cost of insurance is a constant $6,000 per family per year. Marginal social benefit from insurance exceeds the willingness and ability to pay by a constant $4,000 per family per year.
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