If the Cost to Firms of Reducing Workplace Injuries by 1

Multiple Choice

If the cost to firms of reducing workplace injuries by 1 percent is $1,000 a year for each worker, then it is efficient for firms to reduce workplace injuries by 1 percent if:

A) the value workers place on the reduction in workplace injuries is less than $1,000 per year.
B) the value workers place on the reduction in workplace injuries is at least $1,000 per year.
C) firms are earning an economic profit of at least $1,000 per year.
D) firms are earning an economic profit of less than $1,000 per year.