Vaccinations Tend to Result in a Positive Externality

question 86

Essay

Vaccinations tend to result in a positive externality.Draw a graph showing the market for vaccinations, including both the marginal private benefit curve and the marginal social benefit curve.Identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the deadweight loss.

Comprehend the role of elasticity of demand in setting prices for different consumer groups.

Understand the long-run equilibrium conditions in competitive markets and the role of economic profits.

Identify factors affecting the entry and exit of firms in a market.

Distinguish between contestable markets and competitive markets in terms of entry and exit barriers and market outcomes.