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Cuba Cuba
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9 years ago
A chain saw manufacturer can make its chain saws safer by adding a titanium chain guard to its products. Adding the titanium chain guard costs $35 per chain saw. The manufacturer estimates that this will prevent 10 injuries for every 5,000 chain saws sold and that, on average, each injury causes $15,000 of harm. The manufacturer
A) should add the chain guard because it is cost justified.
B) should add the chain guard even though it is not cost justified.
C) should not add the chain guard because it is not cost justified.
D) should not add the chain guard because this will reduce profits.
Textbook 
Economic Analysis of Social Issues

Economic Analysis of Social Issues


Edition: 1st
Author:
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IloveChiIloveChi
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9 years ago
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Cuba Author
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#2
9 years ago
Very, very helpful. Will mark this topic solved.
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#3
9 years ago
Cool! Good luck with your exams.
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