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Suppose the Marginal Social Benefit of the Last Unit of Crime

Question 66

Multiple Choice

Suppose the marginal social benefit of the last unit of crime control in Metropolis is $48,500 per year while the marginal social cost of the last unit of crime control is $35,000 per year. In this instance the city should:


A) cut back on crime control as the quantity of crime control currently exceeds the efficient level.
B) expand crime control as the quantity of crime control is currently less than the efficient level.
C) hire additional officers as long as the marginal social benefit associated with the marginal unit is greater than zero.
D) hire additional officers until the marginal social benefit associated with the marginal unit is zero.

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