Suppose That the Town of Podunk Is Considering Hiring an Additional

Multiple Choice

Suppose that the Town of Podunk is considering hiring an additional police officer.The reduction in crime is estimated to be worth $10 for each of Podunk's 4,500 residents.What should the city do?

A) Hire the police officer because additional safety is priceless.
B) Hire the police officer if the cost of the new officer is less than $45,000.
C) Do not hire the police officer because the costs exceed the benefits.
D) Hire the police officer only if the benefit to the residents exceeds $4,500.