In Figure 9.2, identify the market and optimal outcomes. Does the market under or overproduce public goods? Suppose the annual cost of the Iron Dome is $50 million. What is the opportunity cost of...

In Figure 9.2, identify the market and optimal outcomes. Does the market under or overproduce public goods? Suppose the annual cost of the Iron Dome is $50 million. What is the opportunity cost of this defense spending in terms of private housing assuming a new home can be constructed for (a) $100,000, (b) $150,000? (see News Wire “Public Goods”).