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.

Exploring Economics
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ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter8: Market Failure
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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

 
  1. Explain why a security guard a public good for the shop owners at GOSI?
  2. If each shop owners act individually why zero guards will be hired
  3. Fill in the missing information in the last column in the table.
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