The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.

If the security guards can be hired for $45 per day,how many guards should the shop hire?
A)2
B)3
C)4
D)5

Question

The following figure indicates the reductions in total losses due to theft if a jewelry store hires additional security guards.

If the security guards can be hired for $45 per day,how many guards should the shop hire?
A)2 
B)3 
C)4 
D)5

Quizplus · Accepted Answer

By looking at the graph, it is clear that the store can add up to 4 guards and still have a positive return on investment (i.e. the reduction in losses is more than the cost of hiring the guards). Beyond 4 guards, the reductions in losses start to plateau and the cost of hiring additional guards becomes higher than their contribution to loss prevention. Therefore, the best choice would be to hire 4 guards.

The Following Figure Indicates the Reductions in Total Losses Due