To Achieve the Efficient Level of National Defense

question 47

Multiple Choice

To achieve the efficient level of national defense,

• A) the government could provide national defense because it is a public good.
• B) private firms can provide national defense because it is a private good.
• C) the government can provide national defense because it is a private good.
• D) the government can provide national defense because it is a common resource.
• E) None of the above answers is correct.

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Definitions:

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the total number of units produced.

Marginal Revenue

The added revenue procured by vending an additional unit of a good or service.

Business

An organized effort by individuals to produce and sell goods and services for profit.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the total quantity produced.