A Small Neighborhood Is Considering Hiring a Security Firm to Patrol

question 26

Multiple Choice

A small neighborhood is considering hiring a security firm to patrol the neighborhood. Ten families in the neighborhood would each get a marginal benefit of MB = 10 - h, where h is daily hours of patrol. The marginal cost of patrol is constant at $20 per hour. What is the socially optimal number of patrol hours?

• A) 12
• B) 16
• C) 8
• D) 20

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Definitions:

Spores

A resistant form of certain species of bacteria.

Keratins

are a family of fibrous structural proteins that are key components of hair, nails, and the outer layer of skin, as well as other epithelial tissues.

Agar

A gelatin-like substance derived from seaweed that gives a culture medium its semisolid consistency.

Scabies

Skin lesions that are very itchy and caused by a burrowing mite. Scabies is most commonly found between the fingers and on the genitalia.