Suppose that the marginal benefit of having a security guard at the airport is MB₁,at the bank is MB₂,and at the mall is MB₃.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC₂.
The optimal number of security guards at the airport is ____,the optimal number of security guards at the bank is _______,and the optimal number of security guards at the mall is ______.

Question

Suppose that the marginal benefit of having a security guard at the airport is MB₁,at the bank is MB₂,and at the mall is MB₃.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC₂.

Suppose that the marginal benefit of having a security guard at the airport is MB<sub>1</sub>,at the bank is MB<sub>2</sub>,and at the mall is MB<sub>3</sub>.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC<sub>2</sub>. The optimal number of security guards at the airport is ____,the optimal number of security guards at the bank is _______,and the optimal number of security guards at the mall is ______. A) 3;3;6 B) 6;4;3 C) 5;4;2 D) 6;5;4

The optimal number of security guards at the airport is ____,the optimal number of security guards at the bank is _______,and the optimal number of security guards at the mall is ______.

Quizplus · Accepted Answer

The optimal number of security guards at each location will be where the marginal benefit equals the marginal cost. For the airport: MB₁ = MC₂ For the bank: MB₂ = MC₂ For the mall: MB₃ = MC₂ Given that the marginal cost is the same for all three locations, we only need to look at the marginal benefits. The highest marginal benefit is for the mall, which means it should have the most security guards assigned. The second highest is for the bank, and the lowest is for the airport. Therefore, the optimal number of security guards at the airport is 6, the optimal number at the bank is 5, and the optimal number at the mall is 4.

Suppose That the Marginal Benefit of Having a Security Guard