Chapter 12, Problem 9P

To determine

The interpretations of the “marginal benefit” and the “marginal cost” and to calculate the marginal benefit and marginal cost for each 10% increase in the rate of inoculation.

The proportion of the population that should optimally be inoculated

The interpretation of “profit” and to calculate the profit for all levels of inoculation.

Concept Introduction:

Marginal benefit - It is the satisfaction or benefit that a person receives from consuming an extra unit of goods or services.

Marginal Cost - It is the pain or payment that a person gets after consuming an extra unit of goods or services.