Which of the Following Best Explains Why Making Air Travel

question 123

Multiple Choice

Which of the following best explains why making air travel completely safe is not efficient?

• A) After some level of safety is reached, making airplanes even safer is not worth the opportunity cost that would be incurred.
• B) Because one can't put a price on human life, airplane safety generally doesn't matter economically.
• C) The benefit from additional airplane safety will generally rise as airplanes are made safer, more than offsetting the opportunity cost involved.
• D) The question is misleading--making airplanes safer is always efficient.

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Definitions:

Raw Materials

These are the basic, unprocessed inputs used in manufacturing to produce finished goods.

Selling and Administrative Expense Budget

A detailed plan that estimates the expenses related to selling products and managing the business.

Fixed Costs

Costs that remain constant regardless of the amount of output or sales.

Variable Costs

Costs that change in proportion to the level of production or sales activity.