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

question 42

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:

Nuclear Division

The process by which a nucleus divides, resulting in the segregation of the genome to two daughter nuclei. This occurs via mitosis or meiosis.

Proto-oncogenes

Normal genes that can become oncogenes if mutated or expressed at high levels, potentially leading to cancer.

Tumor Suppressor Genes

Genes that help regulate cell growth and division, and can prevent the development of tumors by repairing DNA, promoting cell death, or ensuring cells do not proliferate uncontrollably.

Apoptosis Initiator

A molecule or signaling pathway that triggers the process of programmed cell death, crucial for development and maintaining homeostasis.