It would seem that Commerce Bank has a strong incentive to install bandit barriers to deter robberies? Why: then, wouldn't they do it?

The banks have little concern for the safety of their customers and employees.

People respond to economic incentives.

People are rational.

Optimal decisions are made at the margin.

Question

Jace Guerra

Business

18 December, 17:47

It would seem that Commerce Bank has a strong incentive to install bandit barriers to deter robberies? Why: then, wouldn't they do it?

The banks have little concern for the safety of their customers and employees.

People respond to economic incentives.

People are rational.

Optimal decisions are made at the margin.

+4

Answers (1)

Know the Answer?

Samantha · Answer 1

Optimal decisions are made at the margin

Explanation:

In classical microeconomic theory there is the premise that economic agents are rational and think margin. This means that in decision-making, agents compare the marginal benefit and marginal cost of an economic attitude. The disincentive that a bank has to implement barriers is that marginal cost is greater than marginal benefit.