(Table: Security in a Residential Community) The table Security in a Residential Community shows the total cost of hiring a 24-hour security service in a community of 100 residents and each individual resident's total benefit from the service.The marginal cost of hiring the second security guard is ________, and the marginal social benefit is _.
A)$150; $200
B)$450; $1,800
C)$150; $600
D)$450; $600

Question

(Table: Security in a Residential Community) The table Security in a Residential Community shows the total cost of hiring a 24-hour security service in a community of 100 residents and each individual resident's total benefit from the service.The marginal cost of hiring the second security guard is ________, and the marginal social benefit is _.
A)$150; $200 
B)$450; $1,800 
C)$150; $600 
D)$450; $600

Quizplus · Accepted Answer

To find the marginal cost of hiring the second security guard, we need to determine the cost of hiring two security guards and subtract the cost of hiring only one security guard.

Marginal cost = Cost of 2 security guards - Cost of 1 security guard
Marginal cost = $1,550 - $1,400
Marginal cost = $150

To find the marginal social benefit, we need to determine the additional benefit received by the 100 residents when the second security guard is hired.

Marginal social benefit = Total benefit of 2 security guards - Total benefit of 1 security guard
Marginal social benefit = $2,000 - $1,400
Marginal social benefit = $600

Therefore, the correct answer is C) $150; $600.

(Table: Security in a Residential Community) the Table Security in a Residential