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Suppose That the Marginal Private Benefit of a New Vaccine MPB=10M P B = 10 -

Question 19

Multiple Choice

Suppose that the marginal private benefit of a new vaccine could be measured as MPB=10M P B = 10 - QQ . Suppose that the marginal social benefit could be measured as MSB=12QM S B = 12 - Q . Suppose that the private marginal cost curve could be measured as MPC=QM P C = Q . What amount of a per-unit subsidy would encourage the optimal societal consumption of the vaccine?


A) $1\$ 1 .
B) $2\$ 2 .
C) $4\$ 4 .
D) $6.\$ 6 .

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