Suppose That the Marginal Benefit of Having a Security Guard

question 72

Multiple Choice

Suppose that the marginal benefit of having a security guard at the airport is MB₁,at the bank is MB₂,and at the mall is MB₃.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC₂.
Starting with MB₁ (marginal benefit curve for the airport) and MC₂,suppose the federal government decided to increase security at the airport.As a result training costs for security guards increases.This would shift ______ and ______ the optimal number of security guard at the airport.

• A)MC₂ to MC_3; increase
• B)MC₂ to MC_3; decrease
• C)MC₁ to MC_2; increase
• D)MC₂ to MC_1; increase

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Definitions:

Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, indicating that it is buying more foreign products than it is selling domestically.

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A weapon of mass destruction that releases energy through nuclear reactions, capable of causing widespread devastation and loss of life.

Thermonuclear Research

Involves the study and experimentation with nuclear fusion reactions, aiming at understanding and harnessing the process that powers the sun to produce energy.

Hydrogen Bomb

A type of nuclear weapon that releases energy through the fusion of hydrogen isotopes, resulting in a significantly more powerful explosion than atomic bombs.