Refer to the figure above.If a common standard for workplace exposure were set at r₁ A)Firm 1 experiences efficient control but Firm 2 experiences a risk that is too high B)Firm 1 experiences a risk that is too high but Firm 2 experiences efficient control of risk

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If a common standard is set at r1, Firm 1 experiences efficient control because it aligns with its optimal risk level, while Firm 2 faces a risk that is too high as it exceeds its optimal risk level.

Refer to the Figure Above