ABC Electronics wants to hire the optimal number of security guards to prevent thefts from its large superstore. The following table shows how QUESTION 1 the number of guards will affect the volume of thefts per week. 1. If you hire guards from the first company. shown in part a, how many should you hire to maximize profits? # guards Total Revenue Product MRP MC ENTER ONLY THE NUMBER ANSWER AND NOTHING ELSE 0 50 3 1 $1600 $1600 700 2 $2400 800 700 3 $3050 650 600 QUESTION 2 A $3560 510 600 2. If you use the second firm, the premium firm shown in part b, how many guards should you hire to maximize profits? 5 $3900 340 600 2 The "Revenue Product" for a guard is the amount of thefts he prevents, which will result in additional actual sales revenue for the store. The first 2 guards each cost $700 per week; each additional guard costs $600 per week. (1) Based on these figures, how many guards should you hire? Fill in the above table showing MRP and MC. QUESTION 3 You consider hiring guards from a premium security firm. These guards are better trained and can prevent more thefts, as shown in the following table: 3. Which is the better option: Total Revenue Product MRP MC A hiring the guards from the first firm as you calculated for question 1 # guards B hiring the guards from the premier firm as you calculated for question 2 50 ENTER ONLY A or B. NOTHING ELSE. 1 $2400 2400 1000 B N $3600 1200 1000 w $3975 375 1000 (2) Each of these guards cost $1000 per week. How many should you hire? QUESTION 4 Select the answer that best explains the reason you chose the firm you did. ENTER THE LETTER OF YOUR CHOICE. A B C or D A I picked the one with the greatest Total Revenue Product, because either option will have the same total cost. B I picked the option with the greatest Marginal Revenue Product C I picked the option with the lowest total cost I picked the option that will allow me to hire the most guards