ZuoTi.Pro
Question

8. The market for flu shots is currently (below/equal to/above) the efficient output. However, this market could produce the

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

In the market for flu shots, marginal social benefit exceeds marginal private benefit because those who chose not to get a flu shot receives a positive externality in a reduced chance of get affected by the flu. But in market equilibrium, flu shots are produced in the market where marginal private benefit is equal to the marginal private cost. it means, the market for flu shots is currently below the efficient output. However, this market could produce the efficient quantity if the beneficiaries of the external benefits sufficiently compensated those receiving the shot.

This compensation mechanism is likely to develop in this case because this market creates a positive externality. To achieve efficient quantity, a subsidy (pigouvian subsidy) should be given so that the marginal private benefit curve moves towards the marginal social benefit curve and externality is internalized.

0 0
Add a comment
Know the answer?
Add Answer to:
8. The market for flu shots is currently (below/equal to/above) the efficient output. However, this market...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A market for flu shots is currently _______ the efficient output. However, this market could produce...

    A market for flu shots is currently _______ the efficient output. However, this market could produce the efficient quantity if the beneficiaries of the external benefits sufficiently compensated those receiving the shot. 9 1 point Does such a compensation mechanism seem likely to develop in this case? Why or why not? BI UA - A - Ix 3 3 x x := E 12pt Paragraph - fx

  • 3. If you get the H1N1 Flu vaccine, not only are your chances of getting sick...

    3. If you get the H1N1 Flu vaccine, not only are your chances of getting sick reduced, but you being healthy also benefits the people you interact with on a daily basis. a. Draw a graph showing the market for H1N1 flu shots. Assume that the marginal cost of each H1N1 flu shot is equal to the marginal social cost and that the demand curve is downward sloping (use Fig. 1 to help you get started). b. Will the marginal...

  • John Beckett enjoys vegetables, so much so that he has given up his full-time job as...

    John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to concentrate on growing and marketing organic vegetables. He started growing vegetables 20 years ago in his back garden and eventually became fully self-sufficient in supplying vegetables for the family. Partly bored with his legal job and tempted by an attractive severance package, John decided he would try to establish his own vegetable supply business. Eighteen months ago he looked around for...

  • Beckett Organics John Beckett enjoys vegetables, so much so that he has given up his full-time...

    Beckett Organics John Beckett enjoys vegetables, so much so that he has given up his full-time job as a lawyer to concentrate on growing and marketing organic vegetables. He started growing vegetables 20 years ago in his back garden and eventually became fully self-sufficient in supplying vegetables for the family. Partly bored with his legal job and tempted by an attractive severance package, John decided he would try to establish his own vegetable supply business. Eighteen months ago he looked...

  • do only last three question i.e 5,6,7 Marketing Organic Foods to the General Public Organic foods...

    do only last three question i.e 5,6,7 Marketing Organic Foods to the General Public Organic foods have been increasing in popularity in Canada. A.C. Nielsen's Fresh Track surveys found that sales of organic fruits and vegetables increased by 8 percent in 2018 and reached annual sales volume of 33 million; industry experts expect sales figures to experience double-digit growth for the next few years. Though these numbers are encouraging, there are reasons for organic farmers to worry. A.C. Nielsen figures...

  • Activity-Based Costing, Distorted Product Costs Sharp Paper Inc. has three paper mills, one of which is...

    Activity-Based Costing, Distorted Product Costs Sharp Paper Inc. has three paper mills, one of which is located in Memphis, Tennessee. The Memphis mill produces 300 different types of coated and uncoated specialty printing papers. Management was convinced that the value of the large variety of products more than offset the extra costs of the increased complexity. During 20X1, the Memphis mill produced 120,000 tons of coated paper and 80,000 tons of uncoated paper. Of the 200,000 tons produced, 180,000 were...

  • second attempt. need asap please 2-4 sentences summarizing the article 4 interesting quotes from the article...

    second attempt. need asap please 2-4 sentences summarizing the article 4 interesting quotes from the article and 4 points explaining each quote In the first few years of the new millennium, at the height of the boom in the offshore call-center business, Tata Consultancy Services, the Indian technology-services giant, made the counterintuitive decision to divest its call-center operations. Why? Because although outsourced call centers were a fast-growing piece of its current business, TCS’s leadership had come to believe that they...

  • Identify 8 issues in regards to Recruitment and Selection, 3 issues for Labour Relation in the...

    Identify 8 issues in regards to Recruitment and Selection, 3 issues for Labour Relation in the following case study : You have recently been hired as an HR Consultant in the new HR Department of Outrage Video Games. Outrage is a five year old, upstart company, run by two very bright young men - Will Bates – President, and his best friend Steve Cobbs, Vice President. This is a very exciting change for you because Outrage, which literally started in...

  • LO 2 8-47 Target costing Mercedes-Benz All Activity Vehicle (AAV)'3 Introduction During the recession beginning in...

    LO 2 8-47 Target costing Mercedes-Benz All Activity Vehicle (AAV)'3 Introduction During the recession beginning in the early 1990s, Mercedes-Benz (MB) struggled with product development, cost efficiency, material purchasing, and problems in adapting to changing mar- kets. In 1993, these problems caused the worst sales slump in decades, and the luxury car maker lost money for the first time in its history. Since then, MB has streamlined the core business, re- duced parts and system complexity, and established simultaneous engineering...

  • Read the Article posted below, then answer the following questions: Mergers & acquisitions are a major...

    Read the Article posted below, then answer the following questions: Mergers & acquisitions are a major form of corporate diversification strategy, identify and discuss the top three reasons why most (50-60%) of acquisitions fail to create shareholder value. What are the five major components of “CEMEX Way” and why has this approach been so successful in post-acquisition integration? In your opinion, what can other companies learn from the “CEMEX Way” as a benchmark for acquisition management? Article: CEMEX: Globalization "The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT