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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