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Four Stores Have a Problem with Theft and Security Is

Question 4

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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 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 Patrols cost $25 per hour.What is the socially efficient level of security? A) 15 person-hours of patrols per week B) 7 person-hours of patrols per week C) 8 person-hours of patrols per week D) 16 person-hours of patrols per week Patrols cost $25 per hour.What is the socially efficient level of security?


A) 15 person-hours of patrols per week
B) 7 person-hours of patrols per week
C) 8 person-hours of patrols per week
D) 16 person-hours of patrols per week

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