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Suppose That the Marginal Benefit of Having a Security Guard

question 134

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Suppose that the marginal benefit of having a security guard at the airport is MB1,at the bank is MB2,and at the mall is MB3.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC2. Suppose that the marginal benefit of having a security guard at the airport is MB<sub>1</sub>,at the bank is MB<sub>2</sub>,and at the mall is MB<sub>3</sub>.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC<sub>2</sub>.   Starting with MB<sub>1</sub> (marginal benefit curve for the airport) and MC<sub>2</sub>,suppose the federal government decided to increase security at the airport.As a result training costs for security guards increases.This would shift ______ and ______ the optimal number of security guard at the airport. A)  MC<sub>2</sub> to MC<sub>3</sub><sub>;</sub> increase B)  MC<sub>2</sub> to MC<sub>3</sub><sub>;</sub> decrease C)  MC<sub>1</sub> to MC<sub>2</sub><sub>;</sub> increase D)  MC<sub>2</sub> to MC<sub>1</sub><sub>;</sub> increase
Starting with MB1 (marginal benefit curve for the airport) and MC2,suppose the federal government decided to increase security at the airport.As a result training costs for security guards increases.This would shift ______ and ______ the optimal number of security guard at the airport.

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Definitions:

Bankruptcy Petition

A formal request filed to the court by an individual or business entity seeking relief from unmanageable debts through bankruptcy proceedings.

Cash Receipts

The total amount of money, including cash, checks, and electronic transfers, received by a business during a given period for goods or services sold.

Fresh Start

A principle allowing entities undergoing bankruptcy to revalue their assets and liabilities, providing an opportunity to reset their financial position.

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