If firms are providing the optimal level of workplace safety, then:
A)workers will not be injured on the job.
B)the marginal benefit of improved safety will equal zero.
C)the total benefit of workplace safety will equal the total cost of workplace safety.
D)the marginal benefit of improved safety will equal the marginal cost of improved safety.

Question

Quizplus · Accepted Answer

If firms are providing the optimal level of workplace safety, then the marginal benefit of improved safety will equal the marginal cost of improved safety. This means that the additional benefit gained from improving safety by a small amount is equal to the additional cost incurred to achieve that improvement. This results in an efficient allocation of resources where there is no underinvestment or overinvestment in safety measures.

If Firms Are Providing the Optimal Level of Workplace Safety