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. Consider a unilateral care accident model in which the injurer can either take care at a cost of $130 or no care. Further suppose
. Consider a unilateral care accident model in which the injurer can either take care at a cost of $130 or no care. Further suppose that the probability of an accident is zero if care is taken and 1/4 if care is not taken. Finally suppose that the victim's damages in the event that an accident takes place are $800. (a) Using the notation from the Hand Rule, what is the value of B? (a) (b) Again using the notation from the Hand Rule, What is the value of P x L? (b) (c) Is it efficient to take care? Choose one of the following. D Yes D No Uncertain
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