Question

A city is considering hiring additional police dedicated to detecting a particular crime. This change would...

A city is considering hiring additional police dedicated to detecting a particular crime. This change would increase the fraction of offenders who get caught from 10% to 15%. Suppose this increase in detection would result in a decrease in the number of crimes committed from 500 per year to 300 per year. The social cost of each crime is $15,000. The cost of trial and punishment for each criminal is $70,000.

a. From an efficiency point of view, what is the most that the city should be willing to pay for the new police? Is it efficient to hire the police?

b. Is the supply of crimes elastic or inelastic? Explain.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A city is considering hiring additional police dedicated to detecting a particular crime. This change would...
A city is considering hiring additional police dedicated to detecting a particular crime. This change would increase the fraction of offenders who get caught from 10% to 15%. Suppose this increase in detection would result in a decrease in the number of crimes committed from 500 per year to 300 per year. The social cost of each crime is $15,000. The cost of trial and punishment for each criminal is $70,000. Calculate the effect that hiring more police would have...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT