Refer to the Information Given in Table 16 -Refer to Table 16

question 94

Multiple Choice

Refer to the information given in Table 16.6 below to answer the question that follows.
Table 16.6 $\begin{array} { ccc } \text { Number of } & \text { Tim's } & \text { Al's }\\\text {Police Officers}& \text { Willingness to Pay}& \text { Willingness to Pay}\\\hline1 & \$ 100 & \$ 60 \\2 & 80 & 20 \\3 & 50 & 0\\\hline \end{array}$


-Refer to Table 16.6. Assume that the marginal cost of hiring a police officer is $100. If A and B are the only two people in the society, the optimal number of police officers is

• A) 1.
• B) 2.
• C) 3.
• D) indeterminate from this information.

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Definitions:

Low Entry Barriers

Conditions in a market that make it easy for new firms to enter, such as low startup costs or minimal regulations.

Oligopoly Market

A market structure characterized by a small number of large firms dominating the market, with significant barriers to entry for new competitors.

Marginal Revenue Curve

The marginal revenue curve represents the change in total revenue that results from selling one more unit of a product.

Crude Oil Production

The process of extracting oil from underground reservoirs and preparing it for refining into usable products such as gasoline, diesel, and other petrochemicals.