If all taxpaying members of society became “hard-hearted,” feeling no external benefi t in the health care provided to others, then what would be the optimal health care output under the external benefi t rationale in Figure 18.4?

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Price P MSB = Marginal social benefit MEB Marginal external benefit 0 Qm Qopt Health care MC = Marginal cost D= Marginal private benefit Figure 18.4 The Socially Efficient Equilibrium in the Presence of a Beneficial Externality