Please provide formula/steps. Thank you in advance. Carla\'s marginal benefit Al

Question

Please provide formula/steps. Thank you in advance.

Carla's marginal benefit Alvin's marginal benefit Quantity police cars on duty) (dollars per car) (dollars per car) 50 90 2 75 30 60 4 20 10 30 The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Carla and Alvin. Hint: Compute the economy's marginal benefit from providing police protection. O The difference in the economy's marginal benefit between having 4 and 5 police cars on duty is 40 dollars per car O The difference in the economy's marginal benefit between having 3 and 4 police cars on duty is 30 dollars per car O The difference in the economy's marginal benefit between having 2 and 3 police cars on duty is 25 dollars per car O The difference in the economy's marginal benefit between having 1 and 2 police cars on duty is 40 dollars per car O The difference in the economy's marginal benefit between having 4 and 5 police cars on duty is 15 dollars per car

Explanation / Answer

Economy's marginal benefit is the horizontal summation of the individual marginal benefits of the people.

So at each quantity Economy's marginal benefit = (Carla's marginal benefit + Alvin's marginal benefit)

Change in Marginal Benefit = (Economy's marginal benefit for q) - (Economy's marginal benefit for q-1)

So from the above table we see that the difference in the economy's marginal benefit between having 2 and 3 police cars on duty is 25 dollars per car.

Please like my answer.

Quantity Marginal Benefit of Economy Change in Marginal Benefit 1 140 - 2 115 -35 3 90 -25 4 65 -25 5 40 -25

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