Assume that it costs about $40,000 a year to keep a prisoner incarcerated and th

Question

Assume that it costs about $40,000 a year to keep a prisoner incarcerated and the average prisoner would have caused $18,500 worth of damage to society per year if free. If this estimate is correct, does it make economic sense to build more prisons?

No. In reference to the economic issues alone, it does not make sense to build more prisons. Assuming that prisons are currently full, the marginal costs of additional prisons are greater than the marginal benefits. Yes. In reference to the economic issues alone, although building more prisons will raise the average cost of adding more inmates, the benefit is greater. Because the average costs are less than the average benefit, it makes sense to build more prisons. No. In reference to the economic issues alone, it does not make sense to build more prisons. The sunk costs of existing prisons exceed the benefits of building more prisons. Yes. In reference to the economic issues alone, it does make sense to build more prisons. Assuming that prisons are currently full, the marginal benefits of additional prisons are greater than the marginal costs

Explanation / Answer

Yes. In reference to the economic issues alone, it does make sense to build more prisons. Assuming that prisons are currently full, the marginal benefits of additional prisons are greater than the marginal costs

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