Refer to the Information Given in Table 16 -Refer to Table 16

question 114

Multiple Choice

Refer to the information given in Table 16.8 below to answer the question that follows.
Table 16.8
$$\begin{array} { c c c } \begin{array} { c } \text { Number of } \\\text { Police Officers }\end{array} & \begin{array} { c } \text { Tim's } \\\text { Willingness to Pay }\end{array} & \begin{array} { c } \text { Al's } \\\text { Willingness to Pay }\end{array} \\\hline 1 & \$ 200 & \$ 120 \\\hline 2 & 160 & 40 \\\hline 3 & 100 & 20 \\\hline\end{array}$$
-Refer to Table 16.8. Assume that the marginal cost of hiring a police officer is $120. If A and B are the only two people in the society, the optimal number of police officers is

• A) 1.
• B) 2.
• C) 3.
• D) indeterminate from this information.

---

Definitions:

Continuous Improvement

An ongoing effort to improve products, services, or processes by making incremental improvements over time, or sudden improvements all at once.

Cost Savings

Represents the actions that reduce expenses or costs within an organization in order to improve profitability without compromising the quality of products or services.

Cost Overrides

Expenses that exceed the original budget allocations for projects or initiatives.

Vendor Package

A set of goods or services offered by a vendor, often as a bundled solution to meet specific business needs.