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Suppose That Bill, George, and Al Constitute the Entire Market P=50QP = 50 - Q

Question 25

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Suppose that Bill, George, and Al constitute the entire market for consumers of national defense. Each man has an identical demand curve for national defense, which can be expressed as P=50QP = 50 - Q . Suppose that the marginal cost for national defense can be expressed as MC=$30M C = \$ 30 . What is the optimal quantity of national defense?


A) 150 units.
B) 60 units
C) 40 units.
D) 20 units.

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