Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The table below shows the marginal private benefits and the marginal private costs of flu shots. The marginal private benefits represent the market demand curve

image text in transcribed
image text in transcribed
The table below shows the marginal private benefits and the marginal private costs of flu shots. The marginal private benefits represent the market demand curve {DIN}, and the marginal private costs represent the market supply curve (SW). Marginal private Marginal Quantity Of flu benefits private costs ShOts Dlnternal Slnternal 1,000 $2,500 $1,800 2,000 $2,250 $1,900 3,000 $2,000 $2,000 4,000 $1,?50 $2.100 5,000 $1,500 $2,200 6,000 $1,250 $2,300 7,000 $1,000 $2,400 8,000 $750 $2,500 9,000 $500 $2,600 Suppose that getting a flu shot generates a positive externality, and the external benefit is $2,200 per thousand flu shots. Compared to the socially optimal amount of flu shots, the amount of flu shots taken at the market equilibrium is _____ shots too few

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics

Authors: Thomas Pugel

16th Edition

0078021774, 9780078021770

More Books

Students also viewed these Economics questions

Question

What is impulse buying? (p. 319)

Answered: 1 week ago