Public Goods and Externalities Suppose that the Town of Bumbletree is considering hiring an additional police officer. The cost of the additional officer is $70,000. The reduction in crime is estimated to be worth $10 for each of Bumbletree's 5,000 residents. What should the city do? The value of public goods? 1. What is the Public Value of the additional officer? 2. What is the Public Cost of the additional officer? 3. Should the the Town of Bumbletree do? Support your responses Response should have three components: 1. Value 2. Value 3. Response and Analysis