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A residential community has 100 residents who are concerned about security. The accompanying table gives the total cost of hiring a 24-hour security service as well as each individual resident’s total benefit.

Quantity of security guards Total cost Total individual benefit to each resident
0 $0 $0
1 150 10
2 300 16
3 450 18
4 600 19
True or False: The security service is a public good for the residents of the community because it is nonexcludable and nonrival.
Security services are nonexcludable: as soon as security is provided to the community, every resident benefits from it. Security services are nonrival: if one resident enjoys protection, this does not diminish any other resident’s ability to enjoy the service. For further review see section, “Providing Public Goods.”
Security services are nonexcludable: as soon as security is provided to the community, every resident benefits from it. Security services are nonrival: if one resident enjoys protection, this does not diminish any other resident’s ability to enjoy the service. For further review see section, “Providing Public Goods.”
Security services are nonexcludable: as soon as security is provided to the community, every resident benefits from it. Security services are nonrival: if one resident enjoys protection, this does not diminish any other resident’s ability to enjoy the service. For further review see section, “Providing Public Goods.”
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