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

question 20

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 $M P C = Q$ . If there is no subsidy in this market,:

• A) society will over-consume this product by 2 units.
• B) society will over-consume this product by 1 unit.
• C) society will under-consume this product by 2 units.
• D) society will under-consume this product by 1 unit.

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Definitions:

Viscous Lava

Lava that has a high silica content resulting in a thick, slow-flowing consistency.

Mount St. Helens

Mount St. Helens is an active stratovolcano located in the Cascade Range of the Pacific Northwest, famous for its catastrophic eruption on May 18, 1980.

Magma

Liquid rock found under the Earth's surface that can harden and transform into igneous rocks.

Viscous Lava

Lava that has a thick, sticky consistency due to its high silica content, which causes it to flow slowly.