Four Stores Have a Problem with Theft and Security Is

question 2

Multiple Choice

Four stores have a problem with theft and security is a public good.Let S stand for the number of person-hours of security patrols per week.The marginal benefit of security patrols to each of the stores is given by the formula MB = 200 - 2S.Patrols cost $20 per hour.Which of the following gives the marginal social benefit function?

• A) MSB = 50 - 0.5S
• B) MSB = 800 - 8S
• C) MSB = 800 - 2S
• D) MSB = 196 - 2S

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Definitions:

Lucy V. Zehmer

A landmark legal case focusing on the binding nature of a contract, stemming from the sale of a farm over a drunken conversation.

Assent

Assent is the agreement or approval by a party to the terms of a contract or an arrangement, often indicated through a signature or explicit agreement.

Allegations

Claims or assertions made against someone, often without proof, typically in legal contexts.

Silence

The absence of sound or the state of saying nothing, often used as a communication or negotiation strategy.