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A Stand-Up Paddleboard Outfitter Operates Without Insurance

question 91

Essay

A stand-up paddleboard outfitter operates without insurance. The outfitter's marginal cost of safety (e.g., staff training, rescue equipment) is MCA = 100 + 14A. The marginal benefit of those actions is given by MBB = 200 - 6A, where A is the number of safety actions taken. The government has mandated that all SUP outfitters carry insurance, leading to a change in the outfitter's marginal benefit curve to MBB = 140 - 6A. How does this government mandate change the efficient number of precautions taken by the outfitter?


Definitions:

Professional Values

The fundamental beliefs and principles that guide the behavior and decision-making processes of individuals within a professional context.

Right Of Publicity

Most states allow a citizen to control the commercial use of his or her identity.

Commercial Use

Commercial use pertains to the application or exploitation of resources, products, or services for business purposes, often to generate profit.

Private Data

Private Data is information that is not intended for public access and is protected due to its sensitive nature, relating to individuals or entities.

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