Question: Use the numerical example that I have attached to explain that a negligence rule is more efficient than the strict liability when precautions are needed

Use the numerical example that I have attached to explain that a negligence rule is more efficient than the strict liability when precautions are needed on both injurer & victim (bilaterally) - please calculate the $result \fStrict Liability Ca : cost of injurer. Ci = W .$ X + Doc) - A . Injurer is responsible of A Since Ci = SC Injurer will choose Efficient 14:16Activity Lever Considered assume [ A = 10", P - THX- CHXV) Cita W * = W

v = Wa - 1 optimal Level of precautions activity D F.

\fStrict Liability Ca : cost of injurer. Ci = W . X + Doc) - A . Injurer is responsible of A Since Ci = SC Injurer will choose Efficient 14:16Activity Lever Considered assume [ A = 10", P - THX- CHXV) Cita W * = W v = Wa - 1 optimal Level of precautions activity D F. O. C Xi = XV - a -0 ( HX : ) + = 10 12 Xi = 103 -1= 989 social optimal F X = a * Negligence on Injurer + ward Wi X . + wa-a Ki = 2,* = 958 9=0Negligence on Victim Cv = ( W v x v + P (xixu. a ) A, if xu

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