A Stand-Up Paddleboard Outfitter Operates Without Insurance

question 60

Essay

A stand-up paddleboard outfitter operates without insurance. The outfitter's marginal cost of safety (e.g., staff training, rescue equipment) is MC_A = 100 + 14A. The marginal benefit of those actions is given by MB_B = 200 - 6A, where A is the number of safety actions taken. What is the optimal number of precautions for this outfitter to take?

---

Definitions:

Herb Kelleher

Herb Kelleher was the co-founder of Southwest Airlines, renowned for his innovative leadership style and emphasis on company culture and employee satisfaction.

Michael Eisner

Former CEO of The Walt Disney Company who served from 1984 to 2005, known for revitalizing the entertainment company and expanding its global presence.

Steven Jobs

A pioneer of the personal computing industry and co-founder of Apple Inc., known for his significant contributions to technology and innovation.

Leadership

The act of guiding or directing a group towards achieving a common goal, often characterized by the ability to inspire and influence others.