-The figure above illustrates the marginal benefit and marginal cost of different quantities of national defence. What is the political equilibrium if voters are well- informed?

Question

Quizplus · Accepted Answer

The political equilibrium, when voters are well-informed, is at the point where marginal benefit equals marginal cost. In the context of the question, this equilibrium is at 3 units, as it is the point where the marginal benefit of national defense aligns with its marginal cost, indicating the most efficient allocation of resources from an economic perspective.

-The Figure Above Illustrates the Marginal Benefit and Marginal Cost