Let Q opt in Figure 18.4 represent the optimal level of health care in society under the external benefi ts rationale for social health care programs. Would members of society necessarily view Q opt as the equitable amount of health care?

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Price P MSB = Marginal social benefit MEB Marginal external benefit 0 Qm Qopt Health care MC = Marginal cost D= Marginal private benefit Figure 18.4 The Socially Efficient Equilibrium in the Presence of a Beneficial Externality