A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts. 
Given the above info, if the cost of a stolen radio is $25, what is the MOST the firm would be willing to pay to hire the first security guard?
A. $200
B. $250
C. $750
D. $500
Answer: D
You might also like to view...
When a country's government budget deficit decreases,
a. the real exchange rate of its currency and its net exports increase. b. the real exchange rate of its currency and its net exports decrease. c. the real exchange rate of its currency increases and its net exports decrease. d. the real exchange rate of its currency decreases and its net exports increase.
Recall the Application about the cost of using import restrictions to protect jobs in the lumber industry to answer the following question(s).Recall the Application. Import restrictions in the lumber industry in the United States have ________ the supply of lumber and ________ the price of lumber in the United States.
A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased
Which of the following statements is true about a consumer's optimal decision when indifference curves are concave?
A) Both goods are consumed. B) No goods are consumed. C) Only one of the goods is consumed. D) It occurs at the point of tangency with the budget line.
Normative economic analysis tends to
A) generate testable hypotheses. B) include the way someone thinks things should be or ought to be. C) involve descriptive statements. D) lead to empirical testing of data.