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

question 197

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 $90 per day and the 4 store owners have agreed to split the costs of hiring guards equally.Which of the following statements is correct?

• A) The owner of Store A would prefer to hire 3 guards.
• B) The owner of Store B would prefer to hire 4 guards.
• C) The owner of Store C would prefer to hire 1 guard.
• D) All of the above are correct.

---

Definitions:

Federal Energy Regulatory Commission

A U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil.

Transportation

The movement of goods or people from one location to another, facilitated by various modes such as road, rail, air, or sea.

Wholesale Price

The cost of goods sold in large quantities primarily to retailers or other merchants, rather than directly to consumers.

Laws of Nature

Fundamental principles or forces that govern the physical universe, including laws of physics, chemistry, and biology.