Use the Following to Answer Questions

question 250

Multiple Choice

Use the following to answer questions:
Figure: External Benefit
-(Figure: External Benefit) Refer to the figure. Shingles is a painful and blistering skin rash that generally affects older adults. The shingles virus is transmitted by those with an active outbreak, and it can cause chicken pox in people who never had it. In this figure depicting the market for shingles vaccinations, what is the external benefit of a shingles vaccine?

• A) $4
• B) $10
• C) $5
• D) $7

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Definitions:

Output Produced

The total amount of goods and services produced by a firm or an economy during a specific period.

Input

Resources used in the process of production, including raw materials, labor, and capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of input.

Marginal Product

The extra output generated from increasing a particular input by one unit while keeping all other inputs unchanged.