Question 17If both potential injurers and potential victims are fully insured, which condition is necessary to produce an efficient level of precautionary effort by both parties?competition between insurers to drive insurance prices down to the expected cost of accidents plus administrative costsO a strict liability ruleO punitive damages to discourage reckless behaviorO a comparative negligence rule to allocate the damages between the victim and the injurer

The law of liabilities isn't a single, specific law, but rather a broad legal concept that defines…

Answered: Question 17 If both potential injurers…

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