The optimal level of military expenditures is the level at which _____.

Question

Quizplus · Accepted Answer

The optimal level of military expenditures is the level at which the marginal benefit of additional expenditures equals marginal cost. This means that spending on military should continue until the benefit of spending an additional dollar on military equals the cost of spending that additional dollar. Spending beyond this point would be wasteful and not socially optimal.

The Optimal Level of Military Expenditures Is the Level at Which