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AP® Microeconomics

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Moderate

Positive Externalities: Subsidizing Flu Vaccines

APMICR-YGREKF

The graph below represents a monopolistic market for flu vaccines.

If the government begins to fully subsidize the production of flu vaccines because of the positive externalities that they provide, what is the quantity that will be produced by the firm represented in the graph above?

A

Q1

B

Q2

C

Q3

D

Q4

E

Q5