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Figure 1 below has a net benefit from offending to offenders curve given by B(n) - which increases at a decreasing rate as marginal benefit

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Figure 1 below has a net benefit from offending to offenders curve given by B(n) - which increases at a decreasing rate as marginal benefit falls from large value when offenses per time period, 11, are low to zero which is the maximum level of offending, mm, in the absence of criminalization or any enforcement effort. The cost of offending curve, including the externality cost to those not compensated in civil actions, is C(n) - - - - - - - - - - - and it rises at an increasing rate as offending grows. Enforcement cost is E(n). Note E(n) = 0 at nm and it increases at an increasing rate as n falls as offendersI become _ ' more difficult to deter because their marginal net benefit is larger. Plot the net benefit curve NB(n) and find the optimal levels of offending, n*, benefit to offenders, B(n*), cost to non offenders C(n*), and enforcement effort, E(n*) $ Cost or Benefit Figure 1 _ Number of Offenses -30 / - ' thefit (n) -40 . Net Benefit M 'mized when n =" 62K

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