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 ofTotal costMarginal benefit for each shopMarginal benefit for all shops130010 26004 39002 412001 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 hiredFill in the missing information in the last column in the table.

Public good have two special characteristics that are non-excludability and non-rivalrous.

Answered: GOSI shopping complex has 100 stores…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

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.

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