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balu736 [363]
3 years ago
13

John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina re

ceives a marginal benefit of $65 from one missile. John, Nick, and Christina are the only people in the economy. What is the economy's marginal social benefit from one missile? $65 $195 $50 $80
Business
1 answer:
swat323 years ago
7 0

Answer:

Economy's marginal social benefit=$65

Explanation:

The economy's marginal social benefit can be calculated by getting the average of the individual marginal benefit.

This can be expressed as;

Economy's marginal social benefit=Sum of individual marginal benefit/Total number of individual's

where;

Sum of individual marginal benefit=John's marginal benefit+Nick's marginal benefit+Christina's marginal benefit=(80+50+65)=$195

Total number of individuals=3

replacing;

Economy's marginal social benefit=195/3=65

Economy's marginal social benefit=$65

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mr_godi [17]

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