-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defence satellites, a public good. What is the marginal benefit to society from the fourth satellite?
A) $18
B) $4
C) $36
D) $20

Question

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defence satellites, a public good. What is the marginal benefit to society from the fourth satellite?
A) $18 
B) $4 
C) $36 
D) $20

Quizplus · Accepted Answer

The marginal benefit to society from a public good is the sum of the marginal benefits to all individuals. For the fourth satellite, Tom's marginal benefit is $16 and Jerry's is $20, summing up to $36.

-Tom and Jerry Are the Only Members of Society