Marty, a Musician, Frequently Plays at Large Parties and Nightclubs

question 34

Multiple Choice

Marty, a musician, frequently plays at large parties and nightclubs. Marty has musical equipment worth $8,000, and he takes precautions to prevent theft. The marginal benefit of these precautions is given by MB = 60 - 3A, where A is the number of precautions Marty takes to reduce theft. The marginal cost of preventing theft (i.e., the time, energy, and effort expended) is given by MC = 2A. What is Marty's optimal level of precautions?

• A) 20
• B) 12
• C) 30
• D) 60

---

Definitions:

Motion Study

A business efficiency technique that analyzes the motions involved in performing a task to design more efficient ways of working, thereby improving productivity.

Frank and Lillian Gilbreth

Pioneers in the field of industrial engineering, known for their studies of time and motion to improve workplace efficiency.

Scientific Management

A management theory developed by Frederick W. Taylor advocating for the optimization of work through scientific methods to increase productivity.

Henry Fayol

A French industrialist and management theorist known for developing a general theory of business administration.