Government mandated safety standard within firms

Name: Government mandated safety standard within firms
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Government mandated safety standards can increase efficiency by avoiding a prisoner's dilemma outcome where each firm would be tempted to cut corners on safety in order to save costs. When all firms are required to adhere to the same safety standards, each firm is on an equal playing field, and consumers can expect a certain level of safety from all products, which can increase trust and demand.

Government Mandated Safety Standard Within Firms