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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Metropolitan Utilities District currently charges residents in Omaha $1.23 per cubic feet of water use for each home's first 900 cubic feet of water used, $1.73 per cubic feet of water use for each home's usage rate between 900 and 3,000 cubic feet, and $2.22 per cubic feet of water use for anything over 3,000 cubic feet of use. The pricing structure is an example of: over-use and inefficient pricing. too few water permits being traded on the local water market. block pricing. conservation pricing.
Use economic analysis to explain why the optimal amount of product safety may be less than the amount that would totally eliminate the risk of accidents and deaths. Use automobiles as an example.
Use of taxpayer funds in athletics. More than $7 billion in public funds have been used to construct NFL stadiums in the past 20 years. Taxpayer funds may also be used to support collegiate athletics in addition to subsidies paid for by students. Is this cost justified? Is fan safety a concern?
An order or other offer to buy goods which requires prompt or current shipment may be accepted by: a prompt shipment of conforming goods a prompt shipment of nonconforming goods a prompt promise to ship the goods a prompt shipment of conforming goods, a prompt shipment of nonconforming goods, or a prompt promise to ship the goods a prompt shipment of conforming goods or a prompt shipment of nonconforming goods only
Was it ethically acceptable for president regan to fire the striking air traffic controller?
1: Given that the value of time is $1.5 per minute, justify the proposal. 2: To what value of the construction cost would the proposal become justified?
The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T. Demand for traffic (measure as traffic volume minute) on this road is T=6880-70 (1/S) Find the equilibrium traffic volume in the absence of any congestion toll. Find the marginal cost function for traffic volume, where cost is expressed as travel time per mile in minutes. per Find the optimal level of traffic volume. Find the optimal congestion toll, expressed in minutes. (Imagine that the congestion toll consists of sitting in the “penalty box" for this period of time.) The function that relates the inverse of speed (1/S) (i.e., the time in minutes that it takes to travel 1 mile) to traffic (T) on a highway is 1/S = 4 + 0.05T. Demand for traffic (measure as traffic volume per minute) on this road is T=6,880- 70-(1/S). a. Find the equilibrium traffic volume in the absence of any congestion toll. b. Find the marginal cost…
If exactly 206 people sign up for a charter flight, Leisure World Travel Agency charges $304/person, However, if more than 206 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person. Let x denote the number of passengers above 206. Find the revenue function R(x). R(x) = Determine how many passengers will result in a maximum revenue for the travel agency. passengers What is the maximum revenue? $ What would be the fare per passenger in this case? dollars per passenger
Thankyou