Answer questions based on the following table, in which MBs and MCs are the marginal benefit and marginal cost of safety, respectively. Ps is the probability that a worker will not suffer an injury on the job during a one year period, and is thus a measure of job safety.

$\begin{array}{l}
\begin{array}{l}
\underline{P}_{s} \
.65 \
.70 \
.75 \
.80 \
.85 \
.90 \
.95
\end{array}
\begin{array}{c}
\underline{MB}_{s}\
{25} \
22 \
19 \
16 \
13 \
10 \
7
\end{array}
\begin{array}{c}
\underline{MC}_{s}\
8\
10 \
12 \
14 \
16 \
18 \
20
\end{array}
\end{array}$
-The profit-maximizing level of job safety is a probability level of:

Question

Answer questions  based on the following table, in which MBs and MCs are the marginal benefit and marginal cost of safety, respectively.  Ps is the probability that a worker will not suffer an injury on the job during a one year period, and is thus a measure of job safety.

$\begin{array}{l}
\begin{array}{l}
\underline{P}_{s} \
.65 \
.70 \
.75 \
.80 \
.85 \
.90 \
.95
\end{array}
\begin{array}{c}
\underline{MB}_{s}\
{25} \
22 \
19 \
16 \
13 \
10 \
7
\end{array}
\begin{array}{c}
\underline{MC}_{s}\
8\
10 \
12 \
14 \
16 \
18 \
20
\end{array}
\end{array}$
-The profit-maximizing level of job safety is a probability level of:

Quizplus · Accepted Answer

To determine the profit-maximizing level of job safety, we need to find the level of Ps where MBs = MCs. 
From the table, we can see that at Ps = 0.80, MBs = 16 and MCs = 14. Therefore, Ps = 0.80 is the profit-maximizing level of job safety.

As for the best choice(s) for the firm, it depends on the firm's objective. 
If the objective is to maximize profits, then the firm should choose a job safety level of Ps = 0.80, as this is the level where MBs = MCs and thus profits are maximized. 
If the objective is to maximize worker safety, then the firm should choose a job safety level with a higher probability than Ps = 0.80, as this would provide greater benefits to workers. However, this would come at a higher cost to the firm.

Answer Questions Based on the Following Table, in Which