(Transcript of audio with descriptions. Transcript includes narrator headings and description headings of the visual content)
(Speaker)
This question is going to ask you to determine the optimal level of security guards for a residential community.
(Description)
The following text is written:
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.
(Speaker)
In the first part, you were asked to explain why the security service is a public good.
(Description)
The table below the text is shown.
The table consists of 3 columns: Quantity of security guards, Total cost, Total individual benefit to each resident.
The table consists of 5 rows.
The first row: Quantity of security guards is, 0, Total cost is, 0 dollars, Total individual benefit to each resident is, 0 dollars.
The second row: Quantity of security guards is, 1, Total cost is, 150, Total individual benefit to each resident is, 10.
The third row: Quantity of security guards is, 2, Total cost is, 300, Total individual benefit to each resident is, 16.
The fourth row: Quantity of security guards is, 3, Total cost is, 450, Total individual benefit to each resident is, 18.
The fifth row: Quantity of security guards is, 4, Total cost is, 600, Total individual benefit to each resident is, 19.
The following text is written below the table:
a. Explain why the security service is a public good for the residents and community.
(Speaker)
To answer this question, we need to focus on the excludability and rivalry of security services. Security services are nonexcludable. As soon as security is provided to the community, every resident benefits from it. Security services are non-rival. If one resident enjoys protection, this does not diminish any other resident's ability to enjoy the service.