Consider a non- rivalrous good, like national defence, provided by the government. At the socially optimal level of provision of this good, the marginal

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At the socially optimal level of provision of a non-rivalrous good like national defense, the marginal cost of providing the last unit of the good is equal to all consumers' combined marginal willingness to pay. This is because at the socially optimal level, the marginal benefit of consuming the good is equal to its marginal cost. Since the good is non-rivalrous, the marginal cost of providing the last unit is zero. Therefore, the social optimal level of provision occurs where the sum of consumers' marginal willingness to pay equals zero.

Consider a Non- Rivalrous Good, Like National Defence, Provided by the Government