Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the private equilibrium quantity and the socially optimal quantity of flu shots produced? Group of answer choices They are equal. The private equilibrium quantity is greater than the socially optimal quantity. The private equilibrium quantity is less than the socially optimal quantity. There is not enough information to answer the question.
Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the private equilibrium quantity and the socially optimal quantity of flu shots produced? Group of answer choices They are equal. The private equilibrium quantity is greater than the socially optimal quantity. The private equilibrium quantity is less than the socially optimal quantity. There is not enough information to answer the question.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 2CQQ
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Question 16
Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the private equilibrium quantity and the socially optimal quantity of flu shots produced?
Group of answer choices
They are equal.
The private equilibrium quantity is greater than the socially optimal quantity.
The private equilibrium quantity is less than the socially optimal quantity.
There is not enough information to answer the question.
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