-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. What is the marginal benefit to society from the third satellite?

Question

Quizplus · Accepted Answer

The marginal benefit to society from a public good is the sum of the marginal benefits to all individuals. For the third satellite, add Tom's marginal benefit ($27) and Jerry's marginal benefit ($27), which equals $54.

-Tom and Jerry Are the Only Members of Society