Economics Homework Help
2)For each of the following situations
1) Heritage apartments has 100 residents who are concerned about security. The table belowgives the total cost of hiring a 24-hour security guard service as well as the marginalbenefit to each of the residents.Total CostMarginalMarginalNumberper DayBenefitBenefitof Guards(S)per Residentto all Residents(S)(S)300106004W900241200a) Why is the security guard a public good for the residents of HeritageApartments?b) Why will zero guards be hired if each of the residents must act individually?c) What is the optimal number of guards (allocationefficient number)? What isthe net benefit at the optimal number of guards?d) Show that the net benefit is less for either one less guard or one more guardthan for the optimal number of guards.
