Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected annual costs and benefits of these alternatives. Total Costs Per YearTotal Benefits Per Year (Reduction in the Costs of Crime)Level One - 1 Security Officer$20,000$80,000Level Two - 1 Security Officer with Guard Dog30,000120,000Level Three - 1 Security Officer with Guard Dog and Patrol Car40,000140,000Level Four - 2 Security Officers with Guard Dog50,000155,000Level Five - 2 Security Officers with Guard Dog and Patrol Car60,000160,000Refer to the above information. The marginal benefits of crime control for Level Two are:
A. $60,000.
B. $20,000.
C. $40,000.
D. $140,000.
Answer: C
You might also like to view...
If a union succeeds in forcing employers in a perfectly competitive product market to increase wages above the equilibrium level, then the level of unemployment
A) will increase. B) will remain constant. C) will decrease. D) may increase or decrease.
The Affordable Care Act incorporated many of the features of one of the countries featured in this chapter: mandatory age-rated premiums sold in health insurance marketplaces by private insurance companies, income-based subsidies to make policies more affordable, and a tiered system of plans offering different provider networks, deductibles, and copays. Which country?
a. Germany b. France c. United Kingdom d. Japan e. Switzerland
An externality can best be defined as
A. a consequence of a transaction that spills over to affect third parties. B. a right of an owner to use and exchange property. C. a cost associated with the production of one more unit of output. D. a party not directly involved in a transaction.
The "paired observation" of (14, 6 ) means
A) x = 14, y = 6. B) x = 6, y = 14. C) x = any multiple of 14, y = any multiple of 6. D) the origin is at 14 and 6.