11-08-07 - 11-08-07 Econ Flu Shot 2 other Government ways...

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Unformatted text preview: 11-08-07 Econ Flu Shot 2 other Government ways of reaching social optimal o o Public prison Subsidy to producer of the flu shot Common resources Resource that was not clearly declared so no incentive Tragedy of the commons o Absence of incentives to prevent the over use and depletion of a commonly owned resource. if price is lower then it should people will buy the flu shot. Tax payers will cover the difference if the government covers it. ...
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