Saylor Academy Econ101: Direct Credit Already Passed

The flu vaccination market has the demand and supply schedules given by the following data. The market is at equilibrium and 70,000 vaccinations are demanded and supplied when the price per vaccination is $20. The government realizes that that each vaccination given generates an external benefit because individuals who do not get vaccinated are also less likely to get the flu when other individuals do get vaccinated. Consequently, the government gives each vaccinated person a direct and immediate subsidy of $10 after they get and pay for their vaccination. What happens in the market for vaccinations? IMAGE {Ans: -TRY There will be a shortage of 20,000 vaccinations. -NOT There will be a shortage of 40,000 vaccinations.}If a producer sells its product in a perfectly competitive market, then: {Ans: -TRY the total cost must be a constant multiple of its quantity of output. -NOT the total revenue must be equal to its average revenue.}Depreciation is: {Ans: -TRY a deduction from accounting profit and a deduction from economic profit. -NOT neither a deduction from accounting profit nor a deduction from economic profit. -NOT deduction from accounting profit and not a deduction from economic profit.}When is the consumer's marginal rate