-Paul and Paula are the only members of society. The table above gives their marginal benefits from missile gunboats, a public good. Determine the marginal benefit to society of the second missile gunboat.
A) $8 million
B) $10 million
C) $12 million
D) $4 million
E) $16 million

Question

-Paul and Paula are the only members of society. The table above gives their marginal benefits from missile gunboats, a public good. Determine the marginal benefit to society of the second missile gunboat.
A) $8 million 
B) $10 million 
C) $12 million 
D) $4 million 
E) $16 million

Quizplus · Accepted Answer

The marginal benefit to society of the second missile gunboat is the sum of the marginal benefits to Paul and Paula, which are $7 million and $5 million respectively, totaling $12 million.

-Paul and Paula Are the Only Members of Society