
The figure above shows the marginal benefit curve (
MB) and marginal cost curve (
MC) of surveillance satellites that provide national defense services.
Suppose that satellites are publicly provided. The voters are rationally ignorant, while the Defense Ministry is well informed. Using the figure above, which of the following quantities of satellites is most likely to be provided?
◦ 300
◦ 200
◦ 150
◦ 100
◦ zero