Suppose That the Marginal Benefit of Having a Security Camera

question 90

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.
An increase in crime would

• A)shift the marginal cost curve from MC to either MC₁ or MC₂.
• B)reduce the differences between each marginal benefit curve.
• C)shift marginal benefit curves to the left.
• D)shift marginal benefit curves to the right.

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Definitions:

Economic Value

Refers to the maximum amount a consumer is willing to pay for an item in contrast to its market price or the value of the benefits derived from owning the item.

Publicly Available Information

Information that is not restricted to private access and can be legally obtained by any member of the general public. This includes data published by governments, companies, and other entities.

Strong Form

In market efficiency theory, the strong form suggests that all information, both public and private, is reflected in stock prices.

Inside Information

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