Suppose That the Marginal Benefit of Having a Security Guard
Suppose that the marginal benefit of having a security guard at the airport is MB1,at the bank is MB2,and at the mall is MB3.The marginal cost of assigning security guard is the same for all three places,and it is represented by MC2.
The marginal cost curves are upward-sloping because the first guards assigned are the guards with the lowest opportunity costs for performing this task.This is referred to as the
A) law of demand.
B) law of supply.
C) law of diminishing marginal utility.
D) low-hanging-fruit principle.