Questions: If antibiotic users get all the benefits of antibiotics but do not bear all of the costs, the social marginal cost of antibiotic use at the market equilibrium will be: higher than the marginal cost to antibiotic sellers. less than the marginal cost to antibiotic sellers. higher than the marginal benefit to the antibiotic buyers. less than the marginal benefit to the antibiotic buyers.

If antibiotic users get all the benefits of antibiotics but do not bear all of the costs, the social marginal cost of antibiotic use at the market equilibrium will be:
higher than the marginal cost to antibiotic sellers.
less than the marginal cost to antibiotic sellers.
higher than the marginal benefit to the antibiotic buyers.
less than the marginal benefit to the antibiotic buyers.
Transcript text: If antibiotic users get all the benefits of antibiotics but do not bear all of the costs, the social marginal cost of antibiotic use at the market equilibrium will be: higher than the marginal cost to antibiotic sellers. less than the marginal cost to antibiotic sellers. higher than the marginal benefit to the antibiotic buyers. less than the marginal benefit to the antibiotic buyers.
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Solution

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The answer is: higher than the marginal cost to antibiotic sellers.

Explanation:

  1. Higher than the marginal cost to antibiotic sellers:

    • This is the correct answer. When antibiotic users do not bear all the costs, it implies that there are external costs associated with antibiotic use, such as the development of antibiotic-resistant bacteria. These external costs are not reflected in the price paid by the users but are borne by society as a whole. Therefore, the social marginal cost, which includes both the private cost and the external cost, will be higher than the marginal cost to antibiotic sellers, who only consider the private cost.
  2. Less than the marginal cost to antibiotic sellers:

    • This is incorrect. The marginal cost to antibiotic sellers is the private cost of producing and selling antibiotics. Since the social marginal cost includes additional external costs (like antibiotic resistance), it cannot be less than the private cost.
  3. Higher than the marginal benefit to the antibiotic buyers:

    • This is incorrect. The marginal benefit to antibiotic buyers is the value they place on the antibiotics. The social marginal cost being higher than the marginal benefit would imply that the use of antibiotics is inefficient from a societal perspective, but this does not directly address the relationship between social marginal cost and the sellers' marginal cost.
  4. Less than the marginal benefit to the antibiotic buyers:

    • This is incorrect. While it might be true that the marginal benefit to buyers is greater than the private cost they pay, this option does not address the relationship between the social marginal cost and the sellers' marginal cost. The question specifically asks about the social marginal cost in relation to the sellers' marginal cost, not the buyers' marginal benefit.
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