00:02
So, here in a question we have to explain the amount of flu shots taken in the market equilibrium.
00:09
So, for understanding this we need to know the socially optimal output optimal output amount of flu shots taken into account the positive externality generated by a flu shot.
00:31
So, in this case, the external benefit is external benefit given in a question that is $15 ,000 per thousand flu shots $15 ,000 for per thousand flu shots.
00:56
So however, we all know the market we believe equilibrium is determined at the intersection of demand which we know here marginal according to the question.
01:15
We know it as marginal private benefits demand and supply car which here known as marginal private cost car marginal private cost.
01:48
So this is what equilibrium we all know.
01:54
This equilibrium is always on this point.
01:57
So in a given table a quantity of 6 ,000 flu shots quantity of 6 ,000 flu shots at the at this point the marginal private benefit is at this point.
02:18
We can say marginal private benefit is two thousand three hundred dollar while the marginal we can say marginal private cost is two thousand five hundred dollar...