Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
corie corie
wrote...
Go to Answer
Posts: 767
Rep: 10 0
6 years ago
The demand for injections to immunize against a disease is given as:
   P = 13  0.0005Q, 
where P = price in dollars, and Q = quantity measured as number of shots per month.  The marginal social benefit function has the same vertical intercept as the demand curve and one half the slope (one half in absolute value).  The marginal cost of injections is a constant $8.

a.   With a competitive market, what price and quantity will prevail, assuming that there is no government intervention?
b.   Explain why the demand curve and marginal social benefit functions are different in this case.  What is the socially optimal quantity in the market?
c.   What government policies could be used to bring about the optimal outcome?
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
Read 286 times
4 Replies
Replies
Answer verified by a subject expert
Bart_argBart_arg
wrote...
#1
Top Poster
Posts: 570
Rep: 14 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
This verified answer contains over 120 words.
1

Related Topics

wrote...
#2
5 years ago
Thanks!
wrote...
#3
4 years ago
thanks
wrote...
#4
3 years ago
Thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1285 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1109
  
 250
  
 277
Your Opinion
What's your favorite math subject?
Votes: 293
Previous poll results: What's your favorite coffee beverage?