Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism.The university is now considering several alternative levels of crime control.This table shows the expected annual costs and benefits of these alternatives. Refer to the above information.If Waybelow undertakes Level Three:
A) total benefits will be less than total costs.
B) marginal costs will exceed marginal benefits.
C) there would be an underallocation of resources to crime control.
D) there would be an overallocation of resources to crime control.

Question

Waybelow Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism.The university is now considering several alternative levels of crime control.This table shows the expected annual costs and benefits of these alternatives.  Refer to the above information.If Waybelow undertakes Level Three:
A) total benefits will be less than total costs. 
B) marginal costs will exceed marginal benefits. 
C) there would be an underallocation of resources to crime control. 
D) there would be an overallocation of resources to crime control.

Quizplus · Accepted Answer

If Waybelow undertakes Level Three, the marginal costs would exceed the marginal benefits. This means that the additional costs of implementing Level Three would be greater than the additional benefits gained from it. Therefore, there would be an underallocation of resources to crime control. This implies that the university should opt for a lower level of crime control where the marginal benefits exceed the marginal costs.

Waybelow Normal University Has Found It Necessary to Institute a Crime-Control