b. Compare the buyers' marginal benefit and the seller's marginal cost at the firm's profit maximizing level of output. The marginal benefit is reflected by the marginal revenue curve, so the marginal benefit is equal to the marginal cost. The socially optimal amount is produced. O reflected by the demand curve, so the marginal cost is greater than the marginal benefit. Society is expending too many resources on flu vaccines. reflected by the marginal cost curve, so the marginal benefit is greater than the marginal cost. Society is expending too many resources on flu vaccines. O reflected by the demand curve, so the marginal benefit is greater than the marginal cost. Society would benefit if more flu vaccines were produced. c. If this were a perfectly competitive market, what would be the equilibrium price? Price: $ d. If this were a perfectly competitive market, what would be the equilibrium output? Equilibrium output: million doses

b. Compare the buyers' marginal benefit and the seller's marginal cost at the firm's profit maximizing level of output. The marginal benefit is reflected by the marginal revenue curve, so the marginal benefit is equal to the marginal cost. The socially optimal amount is produced. O reflected by the demand curve, so the marginal cost is greater than the marginal benefit. Society is expending too many resources on flu vaccines. reflected by the marginal cost curve, so the marginal benefit is greater than the marginal cost. Society is expending too many resources on flu vaccines. O reflected by the demand curve, so the marginal benefit is greater than the marginal cost. Society would benefit if more flu vaccines were produced. c. If this were a perfectly competitive market, what would be the equilibrium price? Price: $ d. If this were a perfectly competitive market, what would be the equilibrium output? Equilibrium output: million doses

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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