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?

Question

Quizplus · Accepted Answer

The Answer of 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?

A Stand-Up Paddleboard Outfitter Operates Without Insurance