Multiple Choice
Assume that price underestimates the value that society places on the flu vaccine. If firms produce where P = MC, firms will be producing
A) the socially efficient amount of flu vaccine.
B) more than the socially efficient amount of flu vaccine
C) less than the socially efficient amount of flu vaccine.
D) so that consumer surplus is zero.
Correct Answer:
Verified
Correct Answer:
Verified
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