A Police Department Is Trying to Allocate Crime Control Resources

question 12

Multiple Choice

A police department is trying to allocate crime control resources between murder and burglary.Detectives cost $40,000 each.Suppose that she marginal benefit of one less murder is $20,000 while the marginal benefit of one less burglary is $1,000.The number of murders and burglaries that occur at different levels of detective allocation is shown in the table. $\begin{array}{ccc}\begin{array}{c}\text { Number of } \\\underline { \text { Detectives Assigned }}\end{array} & \begin{array}{c}\text { Number of } \\\underline { \text { Murders }}\end{array} & \begin{array}{c}\text { Number of } \\\underline { \text { Burglaries }}\end{array} \\ 0 & 20 & 100 \\1 & 16 & 60 \\2 & 13 & 30 \\3 & 11 & 10 \\4 & 10 & 0\end{array}$
The marginal benefits of 1,2,3,and 4 detectives being assigned to burglary prevention are

• A)$40,000,$30,000,$20,000,and $10,000.
• B)$60,000,$30,000,$10,000,and 0.
• C)$40,000,$70,000,$90,000 and $100,000.
• D)40,30,20,and 10.

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Definitions:

Debt Obligations

These are the amounts of money that a company or individual owes to lenders or creditors, which must be repaid according to agreed-upon terms.

Inventory Turnover Ratio

A metric indicating the number of times inventory is sold and replaced over a specific period, reflecting efficiency in managing inventory.

Days Sales Outstanding

Days Sales Outstanding (DSO) measures the average number of days that it takes a company to collect payment after a sale has been made.

Inventory Turnover Ratio

A measure of how many times a company's inventory is sold and replaced over a period. It indicates the efficiency of inventory management.