A Computer Services Center Has a Problem with "Malicious" Computer

question 32

Multiple Choice

A computer services center has a problem with "malicious" computer usage.The center's director has decided to hire additional personnel to monitor computer usage.In order to minimize the total cost of the malicious usage,the director should hire the number of monitors at which

• A)the marginal revenue from the last monitor equals the marginal cost of the last monitor.
• B)the decrease in the cost of malicious usage from the last monitor hired equals the cost of hiring the last monitor.
• C)the marginal benefit per dollar is equal across monitors.
• D)both b and c
• E)all of the above

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Definitions:

ATC Curve

Represents the average total cost of production at different levels of output, showing how cost per unit changes with scale.

Excess Capacity

The ability of a company to produce more goods or services than currently needed, exceeding the current demand.

Profit-Maximizing

The act or process of adjusting production and operational strategies to achieve the highest possible profit margins for a business.

ATC Curve

A graphical representation of a firm's average total costs over a range of output levels, typically U-shaped due to economies and diseconomies of scale.