-Paul and Paula Are the Only Members of Society

Multiple Choice

-Paul and Paula are the only members of society.The table above gives their marginal benefits from missile gunboats,a public good.Suppose the marginal cost of a missile gunboat is $8 million.What is the efficient quantity of missile gunboats?

A) 1 boat
B) 2 boats
C) 3 boats
D) 4 boats
E) More information about whether the services provided by missile gunboats are rival or not is needed.