Multiple Choice
A small neighborhood is considering hiring a security firm to patrol the neighborhood. Ten families in the neighborhood would each get a marginal benefit of MB = 10 - h, where h is daily hours of patrol. The marginal cost of patrol is constant at $20 per hour. What is the socially optimal number of patrol hours?
A) 12
B) 16
C) 8
D) 20
Correct Answer:
Verified
Correct Answer:
Verified
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