Question
If receiving a vaccine for the human papillomavirus (HPV) results in positive externalities because of lower rates of HPV transmission in the community, how can
If receiving a vaccine for the human papillomavirus (HPV) results in positive externalities because of lower rates of HPV transmission in the community, how can public health officials guide the market to the socially optimal level of production/consumption?
Group of answer choices
By finding where marginal social cost equals marginal social benefit, and providing a subsidy equal to the positive externality to consumers. This will induce consumers to increase the quantity consumed in the market.
By equating marginal social cost with marginal private benefit. There is no difference between marginal social benefit and marginal private benefit in this instance.
They can make external third parties pay a cost equal to the negative externality in order to induce additional consumption of the vaccine.
They can make consumers pay a cost equal to the positive externality in order to induce additional consumption of the vaccine.
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