a. Mayers \& Smith Corp. has a fertilizer plant. The probability of an explosion at the plant depends on how much the firm spends on safety as given by the table below, If an explosion oceurs, the loss to society (damaged equipment, death of employees, etc) is expected to be $250 million. Find the optimal level of safety from a societal perspective. 9 Marios - 0.7 for cach correct calculation of marginal cost and marginal benefit; 2 marks correct optimal amount. Suppose Mayers \& Snith has to pay only one half of the losses that occur. How much would Mayers \& Smith spend on safety? (show workings) 8 Marles- 0.7 for each correct calculation of marginal cost and marginal benefit; 1 mark correct optimal amount. b. Other things being equal, is the moral hazard problem associated with liminod liability likely to be worse for the risk of product-related injuries to consumers or foe the risk of environmental damage to the public. Explain 8 Marks 4 points - 2 Marks for tach point