The optimal amount of product safety in automobiles may be less than the amount that would totally eliminate the risk of accidents and deaths if the marginal cost of providing the extra units of safety exceeds the expected marginal benefit received from the extra safety. the marginal cost of providing the extra units of safety is less than the expected marginal benefit received from the extra safety the average cost of providing the extra units of safety exceeds the expected average benefit received from the extra safety the average cost of providing the extra units of safety is less than the expected average benefit received from the extra safety
The optimal amount of product safety in automobiles may be less than the amount that would totally eliminate the risk of accidents and deaths if the marginal cost of providing the extra units of safety exceeds the expected marginal benefit received from the extra safety. the marginal cost of providing the extra units of safety is less than the expected marginal benefit received from the extra safety the average cost of providing the extra units of safety exceeds the expected average benefit received from the extra safety the average cost of providing the extra units of safety is less than the expected average benefit received from the extra safety
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter22: Frontiers Of Microeconomics
Section: Chapter Questions
Problem 6PA
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