-The Figure Above Shows the Marginal Cost and Marginal Benefit

question 168

Multiple Choice

-The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo,Oklahoma.Police protection is a public good.If the city of Hugo hires 25 officers,then

• A) marginal cost will exceed marginal benefit, which means that the efficient number of officers is more than 25.
• B) marginal cost will exceed marginal benefit, which means that the efficient number of officers is less than 25.
• C) marginal benefit will exceed marginal cost, which means that Hugo should reduce the number of officers they hire.
• D) marginal benefit equals marginal cost.
• E) None of the above answers is correct.

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theories on free market economics detailed in "The Wealth of Nations."

Wealth Of Nations

A seminal book by Adam Smith that discusses what builds nations' wealth, often considered the foundation of modern economic theory.

Digital Video Camera

An electronic device that records video in a digital format, allowing for easy storage, editing, and playback on various digital devices.