Suppose That the Marginal Benefit of Having a Security Guard

Multiple Choice

Suppose that the marginal benefit of having a security guard at the airport is MB₁,at the bank is MB₂,and at the mall is MB₃.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC₂.
Starting with MB₁ (marginal benefit curve for the airport) and MC₂,suppose the federal government decided to increase security at the airport.As a result training costs for security guards increases.This would shift ______ and ______ the optimal number of security guard at the airport.

A) MC₂ to MC_3; increase
B) MC₂ to MC_3; decrease
C) MC₁ to MC_2; increase
D) MC₂ to MC_1; increase