Suppose the Marginal Benefit of Employing an Additional Police Officer

question 87

Multiple Choice

Suppose the marginal benefit of employing an additional police officer in efforts to decrease marijuana abuse in Suburbia is $15,000 per year while the marginal cost is $35,500. In this instance the city should:

• A) probably hire the additional officer as the city gets a benefit of $15,000.
• B) probably not hire the additional officer as the city incurs as cost of $35,500.
• C) probably hire the additional officer as the city gets a net benefit of $20,500.
• D) probably not hire the additional officer as the city incurs a net loss of $20,500.

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Definitions:

Just-In-Time (JIT) System

A supply chain management strategy that reduces inventory costs by delivering raw materials and components just as they are needed in the production process.

Sudden Increase In Demand

A rapid and unexpected rise in the desire or need for a specific product or service, which can impact market dynamics.

Long-Term Relationships

Enduring associations between companies and their stakeholders, such as customers or suppliers, typically characterized by trust, loyalty, and mutual benefit over time.

Fixed-Position Layout

An operational strategy where the product remains stationary, and workers, materials, and equipment are moved as needed.