Because the marginal social benefit from healthcare _ the marginal benefit perceived by its consumers, a competitive market in healthcare would _ it.

The marginal social benefit from healthcare exceeds the marginal benefit perceived by its consumers; a competitive market in healthcare would under provide it.

The healthcare service is considered as a merit good which the people under consume, therefore to encourage consumption of healthcare the government provides free vaccination against the infectious diseases.

Social Benefit is the total benefits received by a society from the production and consumption of a commodity. It includes the private benefit as well as the external benefits.

Thus, the marginal social benefit is the total benefit received from one extra unit of commodity that is the addition of marginal private benefit and marginal external benefit.

Therefore, the marginal social benefit from healthcare exceeds the marginal private benefit.

This is the case of positive externality where the market will produce less than the socially optimal quantity as the health care services benefits the society which is not captured by an individual.