As the city population grows, crime increases. The city has the choice of hiring more officers, or installing security cameras. Here are the details:
- Each prevented crime is worth $1000 to the city.
~ Each police officer would be paid $20,000/year.
~ Each security camera would cost $8,000/year.
~ Number of CrimesPrevented Per Year-Number of Officers Hired:
21 - 1, 47 - 2, 76 - 3, 104 - 4, 128 - 5, 149 - 6, 165 - 7, 178 - 8, 188 - 9, 195 - 10.
~ Number of Crimes Prevented Per Year -Number of Camera Installations: 2 - 1, 9 - 2, 18 - 3, 26 - 4, 32 - 5.
Here are the questions:
~ What is the marginal product and marginal revenue product of labor for police officers? ~ What is the optimal number of officers to be hired if the city only hires police officers?
~ What is the marginal product and marginal revenue product for the cameras?
~ What is the optimal number of cameras if the city decides to only use cameras?
2007-02-24
14:34:35
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1 answers
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asked by
Anonymous
in
Economics