Now even more practice part for you. On Figure 2 below, I have put a B(n) benefit function down. Your assignment is to add a cost function, C(n) including effects on victims and externalities and then add an enforcement function B(n). Then try to draw the net benefit function, NB(n), along with the level of offending, n*, that maximizes net benefit. Note in this case C(n) and B(n) are made linear as an illustration of an extreme case. 35 Cost or Benefit Figure 2