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. If Waybelow undertakes Level Three:
A. there would be an overallocation of resources to crime control.
B. marginal costs will exceed marginal benefits.
C. total benefits will be less than total costs.
D. there would be an underallocation of resources to crime control.
Answer: D
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