Covid-X is on the rise: the number of recorded sufferers has increased noticeably in the past few months. Covid-X is a serious and highly contagious respiratory infection. Immunisation is the best way to prevent the disease and its spread. However, very few individuals get a vaccination. Suppose demand for vaccination against Covid-X is P = 200-Q and supply is P = 22+Q/4. Moreover, assume the external benefit to society of getting vaccination is 21.

If the government wants to provide a subsidy per vaccination and pays the subsidy to sellers. What is the optimal subsidy per vaccination?

Group of answer choices

The optimal subsidy per vaccination is 20.

The optimal subsidy per vaccination is 25.

The optimal subsidy per vaccination is 23.

The optimal subsidy per vaccination is 21.

The government doesn't need to provide a subsidy. Citizens are willing to pay whatever they should to get vaccination.

Consider a public good that for consumer 1 has a marginal benefit of MB= 15 - q and for consumer 2 a marginal benefit of MB = 27 - 3q. If the marginal cost of provision is $5 per unit, what is the socially optimal level of output?

Group of answer choices

9 units

10 units

9.25 units

7 units

8 units