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National defense is a good that is nonexcludable and nonrival in consumption. suppose that instead of national defense being paid for with tax dollars national defense is paid for by voluntary contributions from (potentially) all individuals within latvia. bob, who is a latvian citizen, must decide whether he wants to contribute to the national-defense budget. further, suppose that there are a total of 10 citizens, including bob. for the optimal amount of safety, each citizen should pay $10 . every $1 contributed (by anyone) to the national defense leads to increased security, which each person values at $0.25. this means that every dollar spent on defense is worth $2.50 to latvia as a whole. how much does bob personally value the increase in national defense when he contributes $10 to the defense fund?
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National defense is a good that is nonexcludable and nonrival in consumption. suppose that instead o...
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