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FIGURE 6.6 35 Expected cost when the legal standard is less than the social optimum. Expected costs standard causes excessive precaution, and a decient legal

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FIGURE 6.6 35 Expected cost when the legal standard is less than the social optimum. Expected costs standard causes excessive precaution, and a decient legal standard causes decient precaution. In general, injurer's precaution responds exactly to court errors in setting the legal standard under a negligence rule. To illustrate, Figure 6.6 depicts the in] urer's expected costs under a negligence rule when the legal standard is less than the efcient level of precaution: E x*. QUESTION 6.19: \"In general, the injurer's precaution responds to court errors in setting the legal standard under a negligence rule.\" Is this state- ment true for all forms of the negligence rule, or only for the simple negli- gence rule

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