a. If the marginal external benefit is estimated at an additional $24 per vaccination, draw in the MSB curve on the above graph. Plot only the endpoints of the curve and position those points on the edges of the graphing area. b. What are the optimal price and quantity from society's point of view? Optimal price: $| Optimal quantity:
a. If the marginal external benefit is estimated at an additional $24 per vaccination, draw in the MSB curve on the above graph. Plot only the endpoints of the curve and position those points on the edges of the graphing area. b. What are the optimal price and quantity from society's point of view? Optimal price: $| Optimal quantity:
Chapter12: Medicare
Section: Chapter Questions
Problem 1QAP
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
Transcribed Image Text:a. If the marginal external benefit is estimated at an additional $24 per vaccination, draw in the MSB curve on the above graph. Plot
only the endpoints of the curve and position those points on the edges of the graphing area.
b. What are the optimal price and quantity from society's point of view?
Optimal price: $
Optimal quantity:

Transcribed Image Text:Price
The graph below shows the market for polio vaccinations in Narnia. The market is presently in equilibrium.
MPB
MPC
40
Tools
32
MSB
24
my
16
8
20
40 60
80 100 120 140 160
Quantity per period (thousands)
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