-The figure above shows the marginal cost and marginal benefit of police protection in Queensland. Police protection is a public good. If Queensland hires 25 police officers, then
A) marginal benefit equals marginal cost.
B) marginal cost will exceed marginal benefit, which means that the efficient number of officers is more than 25.
C) marginal benefit will exceed marginal cost, which means that Queensland should reduce the number of officers it hires.
D) marginal cost will exceed marginal benefit, which means that the efficient number of officers is less than 25.
E) None of the above answers is correct.
Correct Answer:
Verified
Q30: Q31: Q32: Suppose the marginal cost of the fourth Q33: The free-rider problem exists because Q34: Public goods create a free-rider problem because Q36: As more of a public good is Q37: Suppose a public good is provided in Q38: For which type of good is it Q39: The efficient quantity of a public good Q40: Which of the following is an example
A) some goods
A)
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