Suppose a radar-activated braking system that can help prevent crashes is an option on a new car. It costs $600 and reduces the chance of dying in an auto accident by 1/700. The implicit value placed on life by a person who does not have the system installed is therefore:
A) exactly $600.
B) less than $420,000.
C) at least $420,000.
D) at least $432,000.

Question

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The Answer of Suppose a radar-activated braking system that can help prevent crashes is an option on a new car. It costs $600 and reduces the chance of dying in an auto accident by 1/700. The implicit value placed on life by a person who does not have the system installed is therefore:
A) exactly $600.
B) less than $420,000.
C) at least $420,000.
D) at least $432,000.

Suppose a Radar-Activated Braking System That Can Help Prevent Crashes