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Twenty first century electronics has discovered a theft problem at its warehouse and has decided to hire security guards. The firm wants to hire the optimal number of security guards. A table shows the number of security guards affects the number of radios stolen per week.number of guards... number of radios stolen per week0 501 302 203 144 85 6
a). if each guard is paid 200 each week, and the cost of a stolen radio is $25, how many security guards should the firm hire?b).the cost of a stolen radio is $25 what is the most the firm would be willing to pay to hire the first security guard?c). if each security guard is paid 200, a week and the cost of a stolen radio is $50, how many security guards should the firm hire?
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Assume a tax of t=$2 is attached to each unit exchanged in market. calculate the new market equilibrium and the deadweight loss from this change.
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