The Efficient Level of Crime Control Occurs

question 55

Multiple Choice

The efficient level of crime control occurs:

• A) where the marginal social benefit and the marginal social cost curves intersect.
• B) when the marginal social benefit and the marginal social cost of crime control are equal.
• C) when the amount people are willing to spend for an additional unit of crime control is equal to the cost of providing the additional unit.
• D) All of the above.

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Definitions:

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products or services, allowing for some degree of market power and price control.

Economic Profits

Profits earned by a firm after accounting for both explicit and implicit costs.

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for limited control over market prices.

Short-run Equilibrium

A state in which supply and demand are balanced at a given price level within a short time frame, before all factors become variable.