If the cost to firms of reducing workplace injuries by 1 percent is $1,000 a year for each worker, then it is efficient for firms to reduce workplace injuries by 1 percent if:

Question

Quizplus · Accepted Answer

If the cost to firms of reducing workplace injuries by 1 percent is $1,000 a year for each worker, then firms will find it efficient to bear this cost only if the value that workers place on the reduction in workplace injuries is at least $1,000 per year. If the value that workers place on the reduction in workplace injuries is less than $1,000 per year, then the cost to firms of reducing workplace injuries will exceed the benefits that workers receive from the reduction in workplace injuries. So, option B is the correct answer.

If the Cost to Firms of Reducing Workplace Injuries by 1