No, economics still applies because we only have a finite amount of resources—funding, equipment, officers—and we need to distribute them intelligently to cover all the functions we expect from law enforcement. It wouldn't make sense for a small police department to spend $1 million on bike thefts which add up to $10,000 stolen a year (and nobody injured/killed): it would be a terrible use of tax dollars and would probably require neglecting other police duties.

Even though government service is not run for profit, it still has to deal with scarcity, so economic and financial considerations still apply.