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

Question 32

Multiple Choice

Suppose that the marginal private benefit of a new vaccine could be measured as MPB=10QM P B = 10 - Q . 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 quantity represents the optimal societal consumption of the vaccine?


A) 4 units.
B) 5 units.
C) 6 units.
D) 10 units.

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