-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 fourth satellite?
A) $36
B) $20
C) $18
D) $4

Question

-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 fourth satellite?
A) $36 
B) $20 
C) $18 
D) $4

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 $18 and Jerry's is $18, so the total is $36.

-Tom and Jerry Are the Only Members of Society