Efficient precaution Hockey pucks are dangerous when they fly outside the arena, and plexiglass is often used to protect fans from injury. An injury inflicted by a hockey puck causes harm (A) equivalent to $100,000. The height of the plexiglass and the corresponding costs and risks of injuries are described in this table: Height of Plexiglass Cost Risk of Injury High $9.600 10.3% Medium $7,500 12.3% Low $4,400 15.5% None $0 21% 2. What is the expected harm, that is, p(x)A, of the accidents? When precaution level is high: When precaution level is medium: When precaution level is low: When precaution level is zero: 3. What level of precaution minimizes social cost: high, medium, low or zero? Precaution level (1) Precaution cost (2) Expected harm (1) + (2) High Medium Low Zero 4. Under strict liability and with perfect damages, what level of precaution will be employed by the arena