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-The Figure Above Shows the Marginal Cost and Marginal Benefit

Question 25

Multiple Choice

  -The figure above shows the marginal cost and marginal benefit of police protection in Queensland. Police protection is a public good. If Queensland hires 5 police officers, marginal A)  benefit exceeds marginal cost but not by as much as possible, so 5 officers is not the efficient number to be hired. B)  cost exceeds marginal benefit, so therefore fewer officers should be hired. C)  benefit exceeds marginal cost, so therefore no more officers should be hired. D)  benefit equals marginal cost. E)  benefit exceeds marginal cost, so therefore more officers should be hired.
-The figure above shows the marginal cost and marginal benefit of police protection in Queensland. Police protection is a public good. If Queensland hires 5 police officers, marginal


A) benefit exceeds marginal cost but not by as much as possible, so 5 officers is not the efficient number to be hired.
B) cost exceeds marginal benefit, so therefore fewer officers should be hired.
C) benefit exceeds marginal cost, so therefore no more officers should be hired.
D) benefit equals marginal cost.
E) benefit exceeds marginal cost, so therefore more officers should be hired.

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