-Vaccinations Provide Both Private Benefits and External Benefits

Multiple Choice

-Vaccinations provide both private benefits and external benefits. The table above gives information on the marginal private benefit and marginal external benefit associated with vaccination against varicella (chicken pox) . If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations the government could provide a subsidy of

A) $4 per vaccination.
B) $3 per vaccination.
C) $1 per vaccination.
D) $2 per vaccination