Suppose That the Marginal Benefit of Having a Security Camera

question 97

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.
The marginal cost of providing security cameras would shift from MC to MC₁ if

• A)a natural disaster increased the value of security cameras in a neighboring town.
• B)technological advances made it easier to monitor multiple cameras from a single location.
• C)more firms began substituting cameras for live security guards.
• D)a crime wave increased the demand for security.

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Definitions:

Confidence interval

An estimated range of values calculated from sample data that is likely to include the true population parameter with a specified level of confidence.

Average hourly income

The average amount of money earned by an individual or group per hour worked.

Confidence interval

A palette of statistical results, extracted from samples, aiming to encompass the unspecified value of a population attribute.

Value of t

A statistic used in hypothesis testing that compares the means of two groups to determine if they are significantly different from each other.