C. d. a. cost. b. PRICE 126 C. d. 84 72 40 C. d. 30 8. Refer to Figure above. A benevolent social planner would prefer a. a $48 price to any other price. b. 140 units to any other quantity of output. a subsidy of $52 per unit to a subsidy of $54 per unit. a tax of $54 per unit to a subsidy of $54 per unit. O 80 QUANTITY 140 9. Flu shots provide a positive externality. Suppose that the market for vaccinations is perfectly competitive. Without government intervention in the vaccination market, which of the following statements is correct? At the current output level, the marginal social cost exceeds the marginal private $8,820. $1,620. Supply Social Value The current output level is inefficiently high. A per-shot tax could turn an inefficient situation into an efficient one. At the current output level, the marginal social benefit exceeds the marginal private benefit. Demand 10. Refer to Figure above. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is a. $2,880. b. $2,940.

C. d. a. cost. b. PRICE 126 C. d. 84 72 40 C. d. 30 8. Refer to Figure above. A benevolent social planner would prefer a. a $48 price to any other price. b. 140 units to any other quantity of output. a subsidy of $52 per unit to a subsidy of $54 per unit. a tax of $54 per unit to a subsidy of $54 per unit. O 80 QUANTITY 140 9. Flu shots provide a positive externality. Suppose that the market for vaccinations is perfectly competitive. Without government intervention in the vaccination market, which of the following statements is correct? At the current output level, the marginal social cost exceeds the marginal private $8,820. $1,620. Supply Social Value The current output level is inefficiently high. A per-shot tax could turn an inefficient situation into an efficient one. At the current output level, the marginal social benefit exceeds the marginal private benefit. Demand 10. Refer to Figure above. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is a. $2,880. b. $2,940.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 9PA

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