The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Paul and Art. Police protection is a public good
a) Construct a table of the economy's marginal social benefit from providing police protection.
b) What is the economy's marginal social benefit from having 3 police cars on duty?
Quantity
(cars on duty) Marginal social benefit
(dollars per car)
1 50
2 40
3 30
4 20
5 10
a) The table showing the economy's marginal social benefit from providing police protection is above. At each quantity, the marginal social benefit is the sum of Paul's marginal benefit plus Art's marginal benefit.
b) The marginal social benefit from having three cars on duty is $90.
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