Suppose That the Cost of Installing an Overhead Pedestrian Walkway

question 69

Multiple Choice

Suppose that the cost of installing an overhead pedestrian walkway in a college town is $150,000. The walkway is expected to reduce the risk of fatality by 1.5 percent, and the cost of a human life is estimated at $10 million. The town should

• A)install the walkway because the estimated benefit is twice the cost.
• B)be indifferent between installing and not installing the walkway because the estimated benefit equals the cost.
• C)not install the walkway, since the cost is twice the estimated benefit.
• D)install the walkway, since the cost of even a single life is too great not to take action.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand reputation, customer relationships, and overall favorability in the market.

Promotion Runs

A limited period during which a marketing campaign is active, offering special deals or discounts to boost sales or awareness.

Point of Difference

Unique attributes or benefits of a product or service that set it apart from competitors in the eyes of customers.

Sincerity

The quality of being open, truthful, and free from deceit or pretense.