Suppose that the marginal benefit of having a security camera in the library is given by MB,at the supermarket is given by MB₁ and at the museum is given by MB₂.All values are per week.
The marginal cost of providing security cameras would shift from MC to MC₁ if

Question

Suppose that the marginal benefit of having a security camera in the library is given by MB,at the supermarket is given by MB₁ and at the museum is given by MB₂.All values are per week.

Suppose that the marginal benefit of having a security camera in the library is given by MB,at the supermarket is given by MB<sub>1</sub> and at the museum is given by MB<sub>2</sub>.All values are per week. The marginal cost of providing security cameras would shift from MC to MC<sub>1</sub> if A) a natural disaster increased the value of security cameras in a neighboring town. B) technological advances made it easier to monitor multiple cameras from a single location. C) more firms began substituting cameras for live security guards. D) a crime wave increased the demand for security.

The marginal cost of providing security cameras would shift from MC to MC₁ if

Quizplus · Accepted Answer

The marginal cost of providing security cameras would shift from MC to MC₁ if there is a technological advance that makes it easier to monitor multiple cameras from a single location. This improvement would reduce the cost of providing security cameras and increase the benefit of having them. Therefore, the marginal cost would decrease, shifting the supply curve to the right, leading to a lower equilibrium price and a higher quantity of security cameras provided. None of the other options listed would directly affect the marginal cost of providing security cameras.

Suppose That the Marginal Benefit of Having a Security Camera