Using the data in the table below, answer questions (a) through (e). Marginal benefit from safety Amount of safety provided Marginal cost of safety $60 1 $1 $40 2 $3 $20 3 $6 $10 4 $10 $6 5 $15

a. What is the profit-maximizing level of job safety as viewed by the firm? Explain.

b. Assume that information is perfect and that workers accurately assess personal risk. What is the optimal level of job safety from society's perspective?

c. Suppose government imposed a minimum safety standard of 5 units. Why would the firm object?

d. Suppose new technology reduced this firm's marginal cost data to $1, $2, $3, $4, and $6 for the first through fifth units of safety.

e. What would the profit-maximizing level of job safety be for the firm?