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Business, 29.01.2020 04:51 mikaylaaaaa

Alawnmower manufacturer estimates that the probability of a fatal accident caused by the design of its product is 1/10,000 and that the value of a life lost is $1 million. the manufacturer can change the design to eliminate that chance for $79 per mower and stands ready to incorporate all cost-justified precautions. the total cost of changing the design for 10,000 mowers is $ 79 . (enter your response as a whole number.) will the manufacturer change the design ("yes", or "no")? yes what would the benevolent social planner think about the manufacturer's decision if the true probability of a fatal accident is not 1/10,000 but 1/15,000? given the "true" probability of an accident and the value of a life of $1 million, the expected death cost for 10,000 mowers is $ 100 . (enter your response as a whole number.) would the benevolent social planner agree with the manufacturer's original decision ("yes", or "no")? no

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