-The Figure Above Shows the Marginal Cost and Marginal Benefit

question 55

Multiple Choice

-The figure above shows the marginal cost and marginal benefit of police protection in Queensland. Police protection is a public good. If Queensland hires 5 police officers, marginal

• A) benefit exceeds marginal cost but not by as much as possible, so 5 officers is not the efficient number to be hired.
• B) cost exceeds marginal benefit, so therefore fewer officers should be hired.
• C) benefit exceeds marginal cost, so therefore no more officers should be hired.
• D) benefit equals marginal cost.
• E) benefit exceeds marginal cost, so therefore more officers should be hired.

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Definitions:

Lease Term

The duration for which a lease agreement remains effective, typically stated in months or years.

Constructive Eviction

An eviction that occurs when a property has become unsuitable for use due to the unlivable quality of the property.

Leak

The unauthorized release of confidential information or the escape of a liquid or gas through a hole or crack.

Landlord

A person or entity that owns property and rents it out to individuals or businesses, often under a lease agreement.