Four Stores Have a Problem with Theft and Security Is

question 21

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/(1 + S) .Patrols cost $25 per hour.If each store provided security independently,how much would each store purchase?

• A) 15 person-hours of patrols per week
• B) 7 person-hours of patrols per week
• C) 8 person-hours of patrols per week
• D) 16 person-hours of patrols per week