The inefficiency induced by all positional arms races is that:
A)nobody benefits from superior performance.
B)the increase in performance diminishes on the margin.
C)the increase in performance is negative.
D)spending on performance enhancement continues to escalate beyond the point at which the additional benefit equals the additional cost.

Question

Quizplus · Accepted Answer

Improvement in performance should occur only so long as the additional benefit is greater than or equal to the marginal cost.

The Inefficiency Induced by All Positional Arms Races Is That