Multiple Choice
-The country of Micromania has been concerned with providing the economically efficient level of national defense for its citizens. Micromania has three groups of residents and their defense demands are as depicted in Exhibit N-2. Assuming the marginal cost of national defense is constant at $8 per unit, what is the efficient level ofnational defense to provide?
A) 6 units
B) 13 units
C) 22 units
D) 33 units
E) 44 units
Correct Answer:

Verified
Correct Answer:
Verified
Q63: a.What is a free rider and when
Q64: Taxes and subsidies can be used to
Q65: In the absence of externalities, the optimal
Q66: Free ridership is associated with market failure,
Q67: When property rights are vaguely defined, externalities
Q69: If whooping cranes generate benefits to some
Q70: The bubble concept refers to<br>A) the buying
Q71: Public goods are usually provided by<br>A) private
Q72: Coal produced by strip mining leaves the
Q73: Dina drives to work on Interstate 294