If a nation's level of military expenditures is just below the optimal level _____.

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Quizplus · Accepted Answer

If a nation's level of military expenditures is just below the optimal level, it is unclear what the marginal cost will be. The optimal level of military expenditures is the level at which the marginal benefit of additional military spending equals the marginal cost. If the level is just below the optimal level, it is difficult to determine the exact marginal cost of additional military spending. Depending on the situation, the nation may still be able to protect its borders and interests abroad even with slightly less military spending.

If a Nation's Level of Military Expenditures Is Just Below