New 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 total annual costs and benefits of these alternatives. Level One -1 Security Officer Level Two-1 Security Officer with Guard Dog Level Three -1 Security Officer with Guard Dog and Patrol Car Level Four -2 Security officers with Guard Dog Level Five -2 Security Officers with Guard Dog and Patrol Car Based on cost-benefit analysis, New Normal University should undertake Level Total Total Benefits per Year Costs per (reduction in the costs of Year crime) $ 80,000 120,000 140,000 155,000 160,000 $ 20,000 30,000 40,000 50,000 60,000

New 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 total annual costs and benefits of these alternatives. Level One -1 Security Officer Level Two-1 Security Officer with Guard Dog Level Three -1 Security Officer with Guard Dog and Patrol Car Level Four -2 Security officers with Guard Dog Level Five -2 Security Officers with Guard Dog and Patrol Car Based on cost-benefit analysis, New Normal University should undertake Level Total Total Benefits per Year Costs per (reduction in the costs of Year crime) $ 80,000 120,000 140,000 155,000 160,000 $ 20,000 30,000 40,000 50,000 60,000

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter19: Labor And Entrepreneurship: The Human Inputs

Section: Chapter Questions

Problem 14DQ

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