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Four Stores Have a Problem with Theft and Security Is

Question 2

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Four stores have a problem with theft and security is a public good.Let S stand for the number of person-hours of security patrols per week.The marginal benefit of security patrols to each of the stores is given by the formula MB = 200 - 2S.Patrols cost $20 per hour.Which of the following gives the marginal social benefit function?


A) MSB = 50 - 0.5S
B) MSB = 800 - 8S
C) MSB = 800 - 2S
D) MSB = 196 - 2S

Correct Answer:

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