-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) $16 million
B) $8 million
C) $12 million
D) $10 million
E) $4 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) $16 million 
B) $8 million 
C) $12 million 
D) $10 million 
E) $4 million

Quizplus · Accepted Answer

The marginal benefit to society of a public good is the sum of the marginal benefits to all individuals. If Paul's marginal benefit from the second missile gunboat is $8 million and Paula's is $4 million, then the total marginal benefit to society for the second missile gunboat is $8 million + $4 million = $12 million.

-Paul and Paula Are the Only Members of Society