Suppose that the Town of Podunk is considering hiring an additional police officer.The reduction in crime is estimated to be worth $10 for each of Podunk's 4,500 residents.What should the city do?
A) Hire the police officer because additional safety is priceless.
B) Hire the police officer if the cost of the new officer is less than $45,000.
C) Do not hire the police officer because the costs exceed the benefits.
D) Hire the police officer only if the benefit to the residents exceeds $4,500.

Question

Quizplus · Accepted Answer

The benefit of hiring an additional police officer is estimated to be $10 x 4,500 = $45,000. Therefore, if the cost of the new officer is less than $45,000, it would be financially beneficial for the town to hire the officer. Option A is subjective and does not take into account the financial impact. Option C is incorrect, as the benefit exceeds the cost. Option D is unclear, as it is not specified what is meant by "benefit to the residents".

Suppose That the Town of Podunk Is Considering Hiring an Additional