The Safety Commissioner for the state of North Dakota is contemplating requiring anyone who applies for a hunting license to take a gun safety class. The state's insurance commissioner has determined that taking this course will reduce the likelihood of a self-inflicted mortality by 1/1,000,000. Recent work by an economist at the University of North Dakota indicates that hunters in North Dakota value their lives at $5,000,000. Since the Safety Commissioner is up for re-election soon, he wants to make sure the cost to hunters of the program is not too high. What price should he charge hunters for this safety class? Why might N.D. offer the course for less than the expected benefit to hunters? Explain.

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The Answer of The Safety Commissioner for the state of North Dakota is contemplating requiring anyone who applies for a hunting license to take a gun safety class. The state's insurance commissioner has determined that taking this course will reduce the likelihood of a self-inflicted mortality by 1/1,000,000. Recent work by an economist at the University of North Dakota indicates that hunters in North Dakota value their lives at $5,000,000. Since the Safety Commissioner is up for re-election soon, he wants to make sure the cost to hunters of the program is not too high. What price should he charge hunters for this safety class? Why might N.D. offer the course for less than the expected benefit to hunters? Explain.

The Safety Commissioner for the State of North Dakota Is