Suppose That the Marginal Private Benefit of a New Vaccine $M P B = 10 -$

question 19

Multiple Choice

Suppose that the marginal private benefit of a new vaccine could be measured as $M P B = 10 -$ $Q$ . Suppose that the marginal social benefit could be measured as $M S B = 12 - Q$ . Suppose that the private marginal cost curve could be measured as $M P C = Q$ . What amount of a per-unit subsidy would encourage the optimal societal consumption of the vaccine?

• A) \(\$ 1\).
• B) \(\$ 2\).
• C) \(\$ 4\).
• D) \(\$ 6 .\)

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Definitions:

Longitudinal Research Design

A research strategy that involves repeated observations of the same variables over short or long periods of time.

Same Group

A category of entities that share common characteristics, attributes, or identities, making them alike.

Participants

Individuals who take part in a study or experiment, often to provide data for research analysis.

Informed Consent

A process in healthcare and research requiring that individuals are fully informed about and understand the risks, benefits, and potential alternatives of a procedure or participation before agreeing to it.