Suppose the marginal benefit of employing an additional police officer in efforts to decrease marijuana abuse in Suburbia is $15,000 per year while the marginal cost is $35,500. In this instance the city should:
A) probably hire the additional officer as the city gets a benefit of $15,000.
B) probably not hire the additional officer as the city incurs as cost of $35,500.
C) probably hire the additional officer as the city gets a net benefit of $20,500.
D) probably not hire the additional officer as the city incurs a net loss of $20,500.
Correct Answer:
Verified
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