Suppose some people like national defense and others are offended by it -- i.e. some people derive positive marginal benefit and others derive negative marginal benefit. Efficiency then demands that national defense is produced until the sum of the positive marginal benefits is equal to the (absolute value) of the negative marginal benefits.
Answer the following statement true (T) or false (F)
False
Rationale: Efficiency would still demand that the sum of all marginal benefits is equal to that marginal cost.
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