Twentyfirst Century Electronics has discovered a theft problem at its warehouse and hasd decided to hiresecurity guards. The firm wants to hire the optimal number of security guards. The following table showshow the number of security guards affects the number of radios stolen per week.Number of GuardsO12345Number of Radios Stolen per week5030201486a) If each security guard is paid $200 a week and the cost of a stolen radio is $25, how many securityguards should the firm hire?b) If the cost of a stolen radio is $25, what is the most the firm would be willing to pay to hire the firstsecuirty guard?c) If each security guard is paid $200 a week and the cost of a stolen radio is $50, how many securityguards should the firm hire?

The objective of the question is to determine the optimal number of security guards the firm should…

Answered: Twentyfirst Century Electronics has…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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