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 occurs where MBS=MCS. So, MB₁=MBS at the airport MB₂=MBS at the bank MB₃=MBS at the mall Since we're told that MCS is the same for all three locations, we can just compare the MBS at each location to determine the optimal number of security guards at each location: MB₁=MC₂ MB₂=MC₂ MB₃=MC₂ Thus, the optimal number of security guards at the airport is 6, the optimal number of security guards at the bank is 5, and the optimal number of security guards at the mall is 4.

Suppose That the Marginal Benefit of Having a Security Guard