Refer to the Following Diagram

question 38

Multiple Choice

refer to the following diagram. MCs is the firm’s marginal cost of providing safety, while MBs is the marginal benefit to society of a one more unit of safety. Because of imperfect information and costly worker mobility, MBs’ is the firm’s perceived marginal benefit of safety.
-From society's standpoint,the optimal level of safety is:

• A)0
• B)Q_s'
• C)Q_s
• D)Q*