Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 7

A ladder manufacturer can make a ladder more stable by adding wider feet to the product. Adding wider feet costs $6 per ladder. The manufacturer estimates that this will prevent 4 injury-causing falls for every 1,000 ladders sold and that, on average, each injury causes $1,800 of harm. The injury cost per ladder is _________.
A) $6
B) $1,800
C) $7,200
D) $7.20