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Suppose the Marginal Benefit of Employing an Additional Police Officer

Question 78

Multiple Choice

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:

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