Suppose That the Marginal Benefit of Having a Security Camera

question 48

Multiple Choice

Suppose that the marginal benefit of having a security camera in the library is given by MB,at the supermarket is given by MB₁ and at the museum is given by MB₂.All values are per week.
Suppose cameras are currently allocated efficiently.Now suppose that a camera at the museum malfunctioned and it will take two weeks to replace it.Owners of the supermarket would

• A)be willing to rent the museum a camera for less than the value of the camera to the museum.
• B)not be willing to rent the museum a camera for less than the value of the camera to the museum,but managers at the library would.
• C)not be willing to rent the museum a camera for less than the value of the camera to the museum,and neither would managers at the library.
• D)exploit the situation by renting a camera to the museum for more than $U per week.

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Definitions:

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Manifestations of depression that may include sadness, loss of interest in activities, and changes in appetite or sleep patterns.

Self-esteem

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