A Radio Manufacturer Is Experiencing Theft Problems at Its Warehouse

Multiple Choice

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.

$\begin{array}{ll} \text { Number of}& \text {Number of Radios }\\ \text { Security Guards}& \text { Stolen Per Week}\\0 & 50 \\1 & 30 \\2 & 20 \\3 &14 \\4 & 8 \\5 & 6 \\\end{array}$
-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) $500
D) $750
E) none of the above