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Four Stores Have a Problem with Theft and Security Is

question 14

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Four stores have a problem with theft and security is a public good.Let S stand for the number of person-hours of security patrols per week.The marginal benefit of security patrols to each of the stores is given by the formula Four stores have a problem with theft and security is a public good.Let S stand for the number of person-hours of security patrols per week.The marginal benefit of security patrols to each of the stores is given by the formula   Patrols cost $25 per hour.What is the socially efficient level of security (rounded to the nearest whole number) ? A)  88 person-hours of patrols per week B)  168 person-hours of patrols per week C)  22 person-hours of patrols per week D)  97 person-hours of patrols per week Patrols cost $25 per hour.What is the socially efficient level of security (rounded to the nearest whole number) ?


Definitions:

Behavioral Economics

A field that combines insights from psychology and economics to investigate how individuals actually make decisions, challenging the assumption of perfectly rational agents.

Gum

A soft, cohesive substance designed for chewing, made from the sap of certain trees or synthesized materials.

Candy

A sweet tasting confection made from sugar and often combined with fruits, chocolate, or nuts.

Behavioral Economic Theories

A branch of economics that studies how psychological, social, and emotional factors affect economic decisions.

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