A Radio Manufacturer Is Experiencing Theft Problems at Its Warehouse

question 87

Multiple Choice

A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts.The firm wants to minimize the net cost of warehouse thefts. $\begin{array}{c}\begin{array}{c}\text {Number of}\\\text { Security Guards}\\0\\1\\2\\3\\4\\5\\\end{array}\begin{array}{c}\text {Number of Radios}\\\text { Stolen Per Week }\\50\\30\\20\\14\\8\\6\\\end{array}\end{array}$
Given the above info,if each security guard is paid $200 a week and the cost of a stolen radio is $25,how many security guards should the firm hire?

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Fee Simple

A legal term referring to the most complete ownership of land or property by an individual, which includes the rights to use, sell, or inherit the property.

Mineral Rights

The ownership rights to underground resources such as oil, gas, and minerals.

Surface

Surface generally refers to the exterior or outermost boundary of an object or the top layer of something.

Rights to the Sky

Legal rights related to the use and control of the airspace above a piece of land, often impacting construction and property law.