Solution for QID #2544: Three residents of a community are to decide the size of the | StudyHelpMe

Three residents of a community are to decide the size of their police force. Each policeman costs $24,000. The marginal benefit of an additional policeman for each individual at a given number of existing policemen is as follows. What is the socially optimal number of policemen? If the number of policemen is decided by majority voting, who is the medium voter? If each consumer is subject to a head tax, how many policemen will be hired? The socially optimal number of policemen (policeman's salary = $24,000)   Number of policemen (z) Marginal benefit for consumer A Marginal benefit for consumer B Marginal benefit for consumer C Marginal social benefit 1 $19,000 $16,000 $13,000 $48,000 2 $17,000 $14,000 $11,000 $12,000 3 $15,000 $12,000 $9,000 $42,000 4 $13,000 $10,000 $7,000 $36,000 5 $11,000 $8,000 $5,000 $30,000 6 $9,000 $6,000 $3,000 $24,000 7 $7,000 $4,000 $1,000 $18,000