Suppose That the Marginal Benefit of Having a Security Camera

question 29

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.
If the weekly marginal cost of security cameras is given by MC,the optimal number of security cameras that should be mounted in the library is ____,the optimal number of security cameras that should be mounted in the supermarket is ____,and the optimal number of security cameras that should be mounted in the museum is ____

• A) 30;40;50.
• B) 50;50;50.
• C) 50;40;30.
• D) 40;50;60.

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Definitions:

Machine-Hours

A measure of production activity that quantifies the total hours a machine is operated over a specific period.

Fixed Manufacturing Overhead

Indirect production costs that remain constant regardless of the volume of production, such as salaries of managers and depreciation of factory equipment.

Budget Variance

Budget Variance is the difference between the budgeted or planned amounts and the actual amounts spent or earned, used to evaluate financial performance.

Standard Hours

The expected amount of time required to produce a single unit or a batch of units under normal operating conditions.