Question

the table provides information about a flu vaccination program What number of shots per day would a private flu vaccination program provide

The table provides information about a flu vaccination program. What number of shots per day would a private flu vaccination program provide? If the marginal external benefit from a flu vaccination is equivalent to $15, what is the efficient number of shots? A private flu vaccination program would provide shots a day. If the marginal external benefit from a flu vaccination is equivalent to $15, the officient number of shots is a day. Quantity (shots per day) 0 100 Marginal Marginal cost benefit (dollars per shot) 0 0 20 35 30 30 40 25 50 20 60 15 200 300 400 500

Answer 1

The optimum Quantity is the point where marginal cost is equal to the marginal benefits.

Requirement 1:

A private flu vaccination program would provide 200 shots a day. (because its Marginal cost is equal to Marginal benefits at a quantity of 200 shots a day)

Requirement 2:

If the marginal external benefit from a flu vaccination is equivalent to $15, the efficient number of shots in 300 a day. (Refer the table below for marginal cost and marginal benefit)

Revised Table (including external benefit):

Quantity	Marginal Cost	Marginal Benefit
0	$                         -	$                         -
100	$                        20	$                        50
200	$                        30	$                        45
300	$                        40	$                        40
400	$                        50	$                        35
500	$                        60	$                        30