Figure 156 Figure 15

Multiple Choice

Figure 15.6 Figure 15.6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to Figure 15.6.Why is there a deadweight loss?

A) Because the marginal private benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost
B) Because the marginal private cost for each additional unit between Q₁ and Q₂ exceeds the marginal private benefit
C) Because the marginal social cost for each additional unit between Q₁ and Q₂ exceeds the marginal social benefit
D) Because the marginal social benefit for each additional unit between Q₁ and Q₂ exceeds the marginal cost