Table 11-3
This table describes the defense demands for three equal sized groups of people in Nirvanaville. The second, third, and fourth column shows the quantity that a group will demand for a given price (the first column).

-Refer to Table 11-3.If the marginal cost of national defense is constant at $12 per unit,what is the efficient level of national defense to provide?
A) 3 units
B) 13 units
C) 22 units
D) 33 units

Question

Table 11-3
This table describes the defense demands for three equal sized groups of people in Nirvanaville. The second, third, and fourth column shows the quantity that a group will demand for a given price (the first column).
 
-Refer to Table 11-3.If the marginal cost of national defense is constant at $12 per unit,what is the efficient level of national defense to provide?
A) 3 units 
B) 13 units 
C) 22 units 
D) 33 units

Quizplus · Accepted Answer

The efficient level of national defense is where the marginal cost equals the marginal benefit. If the marginal cost is constant at $12, we need to find the quantity where the marginal benefit is also $12. This is typically given in a table or graph, and based on the options, 22 units is likely where this equality occurs.

Table 11-3 This Table Describes the Defense Demands for Three Equal Sized