If actions to reduce the expected cost of an accident are equally effective and managers authorize the least expensive actions first, the marginal cost of additional actions_______ .

Question

Quizplus · Accepted Answer

The marginal cost of additional actions increases because as the least expensive actions are implemented first, any further actions to reduce the expected cost of an accident will be more expensive, thus increasing the marginal cost of additional safety measures.

If Actions to Reduce the Expected Cost of an Accident