Table 11-5 A Small Strip Mall Contains Four Retail Stores, and Crime

Multiple Choice

Table 11-5
A small strip mall contains four retail stores, and crime has recently been on the increase in the neighborhood of the strip mall. The owners of the four stores - Stores A, B, C, and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards. The table represents their willingness to pay, that is, the maximum amount that each store owner is willing to contribute, per day, to hire each security guard.

-Refer to Table 11-5.Suppose the cost to hire each individual guard is $100 per day.Then total surplus for the 4 store owners is

A) $45 if 1 guard is hired.
B) $60 if 2 guards are hired.
C) $45 if 3 guards are hired.
D) All of the above are correct.