Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200/(1 + S). Patrols cost $25 per hour. What is the socially efficient level of security?
A. 31 person-hours of patrols per week
B. 15 person-hours of patrols per week
C. 25 person-hours of patrols per week
D. 32 person-hours of patrols per week
A. 31 person-hours of patrols per week
You might also like to view...
In an oligopolistic market there are
A. few sellers. B. many sellers. C. many buyers. D. few buyers.
The economically efficient car is the one with the lowest emissions
a. True b. False Indicate whether the statement is true or false
Which of the following represents a transfer payment?
a. payment to a company for moving expenses b. a Social Security benefit payment c. payment to an importer d. a postal clerkâs salary
The trilemma refers to all the following EXCEPT:
a. a fixed exchange rate. b. international capital mobility. c. monetary policy autonomy. d. price controls.