Problem
Guards patrolling a mall protect the mall's two stores. The television store's demand curve for guards is strictly greater at all prices than that of the icecream parlor. The marginal cost of a guard is $10 per hour. Use a diagram to show the equilibrium, and compare that to the socially optimal equilibrium. Now suppose that the mall's owner will provide a $s per hour subsidy per guard. Show in your graph the optimal s that leads to the socially optimal outcome for the two stores.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.