Question: PLEASE HELP WILL RATE ASAP question is complete QUESTION 19 Consider the following potential car accident problem, where D is the driver/injurer and P is

PLEASE HELP WILL RATE ASAP question is complete

PLEASE HELP WILL RATE ASAP question is complete QUESTION 19 Consider the

QUESTION 19 Consider the following potential car accident problem, where D is the driver/injurer and P is the pedestrian/victim. The expected accident cost is affected by the level of care D chooses, which is indicated by his driving speed, as well as P's level of care, which is indicated by her walking or running. (The faster D drives, the higher the expected accident cost. Also, if P runs, she is less careful, and the expected accident cost is higher.) If D drives at 65 mph, D's total benefit is 113, and if P walks, then the expected accident cost is 86. If D drives at 60 mph, D's total benefit is 98, and if P walks, then the expected accident cost is 66. If D drives at 55 mph, D's total benefit is 85, and if P walks, then the expected accident cost is 51. If D drives at 45 mph, D's total benefit is 73, and if P walks, then the expected accident cost is 41. If D drives at 30 mph, D's total benefit is 63, and if P walks, then the expected accident cost is 36. If D drives at 20 mph, D's total benefit is 54, and if P walks, then the expected accident cost is 34. The pedestrian P's benefit from walking is 20, and her benet from running is 27. If P runs, the expected accident cost will increase by 12 for whatever speed D drives. (A) Under the rule of strict liability with a defense of contributory negligence, the court should set the standard of care to be for the relevant party. Under this rule, D's NET benefit for driving 45 mph if P runs is , and P's NET benefit for running if D drives 45 mph is .All things considered, the rule of strict liability with a defense of contributory negligence will induce D to drive mph and P to (B) Under the rule of negligence, the court should set the standard of care to be for the relevant party. Under this legal rule, P's net benet for running if D drives 45 mph is .Will this legal rule induce efcient behavior from the driver as well as the pedestrian? 16 poii

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!