Four Stores Have a Problem with Theft and Security Is

question 14

Multiple Choice

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

---

Definitions:

Completed Units

Finished goods that have undergone all stages of production and are ready for sale or distribution.