Refer to the figure above. MC1 represents marginal costs for firm 1, while MC2 represents marginal costs for firms 2. If a common standard for workplace exposure were set at r1
A) Firm 2 experiences efficient control and Firm 1 experiences a risk that is too low.
B) Firm 1 experiences efficient control and Firm 2 experiences a risk that is too low.
C) Firm 1 experiences efficient control and Firm 2 experiences a risk that is too high.
D) Firm 1 experiences a risk that is too high and Firm 2 experiences efficient control of risk.
Correct Answer:
Verified
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