GOSI shopping complex has 100 stores all rented to communication shops and concerned about security. The table below shows the total costs of hiring security guards to ensure safety of customers and protect storeowners from being vandalized. The table also shows the marginal benefit to each one of the shops. Number of Total cost Marginal benefit for each shop Marginal benefit for all shops 1 300 10 2 600 4 3 900 2 4 1200 1 Explain why a security guard a public good for the shop owners at GOSI? If each shop owners act individually why zero guards will be hired Fill in the missing information in the last column in the table.
GOSI shopping complex has 100 stores all rented to communication shops and concerned about security. The table below shows the total costs of hiring security guards to ensure safety of customers and protect storeowners from being vandalized. The table also shows the marginal benefit to each one of the shops. Number of Total cost Marginal benefit for each shop Marginal benefit for all shops 1 300 10 2 600 4 3 900 2 4 1200 1 Explain why a security guard a public good for the shop owners at GOSI? If each shop owners act individually why zero guards will be hired Fill in the missing information in the last column in the table.
Chapter8: Market Failure
Section: Chapter Questions
Problem 3P
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GOSI shopping complex has 100 stores all rented to communication shops and concerned about security. The table below shows the total costs of hiring security guards to ensure safety of customers and protect storeowners from being vandalized. The table also shows the marginal benefit to each one of the shops.
Number of |
Total cost |
Marginal benefit for each shop |
Marginal benefit for all shops |
1 |
300 |
10 |
|
2 |
600 |
4 |
|
3 |
900 |
2 |
|
4 |
1200 |
1 |
- Explain why a security guard a public good for the shop owners at GOSI?
- If each shop owners act individually why zero guards will be hired
- Fill in the missing information in the last column in the table.
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