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if many people in a community get flu shots, the whole community benefits, including those who did not get flu shots. therefore, not

Question

If many people in a community get flu shots, the whole community benefits, including those who did not get flu shots. Therefore, not enough people may decide to get the shots This is one illustration of Multiple Choice the market allocating resources efficiently. monopoly power due to lack of competition. supply-side market failure

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Ira Expert · Tutor for 3 years

Answer

C. supply-side market failure

Explanation

The scenario described illustrates a typical issue in economics known as market failure. Specifically, it reflects a type of market failure referred to as a supply-side market failure. In this context, although getting flu shots has positive externalities (benefits to others), individuals may not get vaccinated due to personal cost considerations, leading to suboptimal market outcomes where fewer people get vaccinated than is socially optimal. This under-provision is an inefficient allocation of resources that benefits the community.