Suppose That the Marginal Benefit of Having a Security Camera

question 106

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.
Marginal Cost is given as MC.Suppose the only variable cost of a security camera is the wage of the person monitoring it.Suppose further that camera monitors demand equal wages,regardless of their location.If wages for all camera monitors are set at $T,

• A)all three locations will be served efficiently.
• B)the museum will hire more monitors than the efficient number and the supermarket will hire fewer monitors than the efficient number.
• C)only the supermarket will hire the efficient number of monitors.
• D)the library will hire too many monitors.

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