The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.
If the security guards can be hired for $45 per day, how many guards should the shop hire?
A)2
B)3
C)4
D)5

Question

The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. 
If the security guards can be hired for $45 per day, how many guards should the shop hire?
A)2 
B)3 
C)4 
D)5

Quizplus · Accepted Answer

From the graph, we can see that hiring the first three security guards reduces the total losses due to theft significantly. Beyond three guards, the reduction in total losses due to theft is not as significant. Therefore, the shop should hire 4 guards, as the reduction in losses is highest with 4 guards (approximately $400), and the cost of hiring 4 guards would be $180 ($45 per guard per day). Hiring additional guards would reduce total losses marginally, but the cost of hiring additional guards would be higher than the additional reduction in losses, making it not worth it for the shop.

The Following Figure Indicates the Reductions in Total Losses Due