The local government has decided that because childrens health has large external benefits, it will offer a
Question:
a. Assume that the correct level of subsidy is D3. Compared to the efficient outcome, graph the loss in total surplus that would result from subsidies D2 and D4.
b. What is the socially optimal level of pediatrician visits?
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a See graph below b The socially optimal lev...View the full answer
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