Table 11-5 A Small Strip Mall Contains Four Retail Stores, and Crime

question 303

Multiple Choice

Table 11-5
A small strip mall contains four retail stores, and crime has recently been on the increase in the neighborhood of the strip mall. The owners of the four stores - Stores A, B, C, and D - are considering contributing to a pool of money that will be used to hire up to 4 security guards. The table represents their willingness to pay, that is, the maximum amount that each store owner is willing to contribute, per day, to hire each security guard.

-Refer to Table 11-5.Suppose the cost to hire each individual guard is $130 per day.How many guards should be hired to maximize the total surplus of the four store owners?

• A) 1
• B) 2
• C) 3
• D) 4

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Definitions:

Expected Monetary Value

A calculation used in decision-making that multiplies the potential outcomes by their respective probabilities to get an average outcome value.

Optimal Act

A decision or action that yields the best outcome from all possible alternatives.

Environmental Packaging

Packaging designed to minimize environmental impact, often through the use of recyclable or biodegradable materials.

Media Focus

The concentration of media coverage on specific topics, areas, or issues, influencing public perception.