Question

Estimated benefits and costs of crime prevention, typical U.S. community (thousands of dollars) (2) (3) (4) (5) (6) (1) Units of Crime Prevention per Year - 2 3 4 Total Marginal Benefits Benefits ${ 220 $ 220 425 2os 615 190 800 185 970 170 1125 155 1,265 1,265 128 1,505 Total Costs 60 130 212 306 415 539 679 835 Marginal Costs $ 60 40 82 94. 109 124 Total Net Benefits 160 295 403 s 494 555 $ 586 5 z 172 $ $ 498 400 90

Most of the answers have been filled up. I just need help with steps on how to solve for each number. I don't need the answers for the empty boxes.

Answer 1

Solution- 0 Calculation of Total Benefits Total Benefit is the sum of successive Marginal Benefits - At & total Benefits equals Marginal Benefit - At a total Benefits Marginal Benefit at tt Marginal Benefit at 2 Like at Unit 6 total Benefit will be the Benefits from Unit one Sum of to unit Marginal six. = 2204 205+ 190 + 185 +17+155= 1125 0 Unit 2 Marginal Benefit Marginal Benefit - Total Benefit write total Benefit at unit t for so Marginal Benefit is calculated by Substracting the previous unit total Benefit from corresponding total Benefit for example. At unit 4 Marginal Benefit = Total Benefit at unit 4 - total Benefit at unit 3 = 800 - 615 = 185

T Total Cost Total Cost is calculated by adding the Marginal cost. It is same like Total Benefit is calculated by adding Marginal Benefit for example total cost at unit 4. = MC at unit t + MC at unit 2 + MC & MC, Go +70 +82 + a4 = 306 - ① Marginal cost It is calculated like Marginal Benefit. Total Cost of unit is substrated from last unit. for example at unit u Marginal Cost = total Cost at unit 4 - total cost at unit 3 = 306 - 212 = 94

Cost total Net Benefit - Total Benefit - Total At unit 5 Total Benefit = 970 Total Cost = 415 Total Net Benefit = 970-415= 555