Question 2 This question is meant to illustrate the free-rider problem. The four stores in a strip mall have to decide on how many security guards to hire. Currently, the mall has zero security guards. A security guard costs S36 to hire. Each store's marginal benefit for an additional security guard is given by the followin g table This means that, if one security guard is hired, Store 1 gets S13 worth of benefits, Store 2 also gets $13 worth of benefits, and so on Guard Number... |Marginal Benefit (S) | 13 (a) The four stores first agree to split the cost of hiring the security guard. To each store, what is the marginal cost of hiring a security guard (b) How many security guards does each store prefer to hire? They should all agree on the same number. If this number of security guards is hired, how much better off is each store, compared to no security guards? Now, suppose that Store 4 decides to lie and say it has zero marginal benefit from hiring security guards, and will not pay for any. It is up to Stores 1, 2, and 3 to split the hiring cost, and decide on how many (c) How many security guards do the three stores prefer to hire? If this number is hired, how much happier (d) Does Store 4 prefer to lie, and get the outcome from part c), or to tell the truth about its marginal guards to hire is Store 1, compared to no security? benefit, and get the outcome from part b)? (e) Explain, in your own words, how the free-rider problem appears in this