Define are resources being allocated efficiently

Reference no: EM13221260

Given how resources are currently allocated, the Lexington police department can use a marginal policeman to prevent murders, in which case he will prevent 1 murder/year, or the prevent robberies, in which case he will prevent 75 robberies/year. The marginal benefit to preventing a murder is $10M, while the marginal benefit to preventing a robbery is $100,000. Are resources being allocated efficiently?

Reference no: EM13221260

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