-The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo,Oklahoma.Police protection is a public good.If the city of Hugo hires 25 officers,then
A) marginal cost will exceed marginal benefit, which means that the efficient number of officers is more than 25.
B) marginal cost will exceed marginal benefit, which means that the efficient number of officers is less than 25.
C) marginal benefit will exceed marginal cost, which means that Hugo should reduce the number of officers they hire.
D) marginal benefit equals marginal cost.
E) None of the above answers is correct.

Question

-The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo,Oklahoma.Police protection is a public good.If the city of Hugo hires 25 officers,then
A) marginal cost will exceed marginal benefit, which means that the efficient number of officers is more than 25. 
B) marginal cost will exceed marginal benefit, which means that the efficient number of officers is less than 25. 
C) marginal benefit will exceed marginal cost, which means that Hugo should reduce the number of officers they hire. 
D) marginal benefit equals marginal cost. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

In the context of public goods like police protection, efficiency is achieved when marginal cost equals marginal benefit. If hiring 25 officers results in marginal cost exceeding marginal benefit, it indicates that the city has surpassed the efficient number of officers, implying that the efficient number is less than 25.

-The Figure Above Shows the Marginal Cost and Marginal Benefit