7. Suppose that you were the manager of a large retail store that was currently experiencing a shoplifting problem. Every hour, approximately $15 worth of merchandise was being stolen from your store. Suppose that a security guard would completely eliminate the shoplifting in your store. If you were interested in maximizing your profits, should you hire a security guard if the wage rate of security guards was $20 per hour? Why or why not? What does this imply about the relationship between average shoplifting per hour in the economy and the wage rates of security guards?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Unemployment
Section: Chapter Questions
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7. Suppose that you were the manager of a large retail store
that was currently experiencing a shoplifting problem.
Every hour, approximately $15 worth of merchandise was
being stolen from your store. Suppose that a security guard
would completely eliminate the shoplifting in your store. If
you were interested in maximizing your profits, should you
hire a security guard if the wage rate of security guards was
$20 per hour? Why or why not? What does this imply about
the relationship between average shoplifting per hour in the
economy and the wage rates of security guards?
Transcribed Image Text:7. Suppose that you were the manager of a large retail store that was currently experiencing a shoplifting problem. Every hour, approximately $15 worth of merchandise was being stolen from your store. Suppose that a security guard would completely eliminate the shoplifting in your store. If you were interested in maximizing your profits, should you hire a security guard if the wage rate of security guards was $20 per hour? Why or why not? What does this imply about the relationship between average shoplifting per hour in the economy and the wage rates of security guards?
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