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Posted: April 10th, 2022
Marginal hand rule to evaluate the merits of this claim
Marginal hand rule to evaluate the merits of this claim
Take into account a barge proprietor who’s deciding whether or not to put up an attendant on his barge to guarantee that it stays correctly moored to the pier. The next desk offers the complete price of hiring the attendant,the chance of an accident, and the …xed price of an accident:
Value of care Chance Harm
No attendant posted $zero zero.25 $400
Attendant posted for 24 hours $94 zero $400
(a) Calculate the marginal price and marginal bene…t of posting the attendant. In accordance to the marginal Hand Rule, would the barge proprietor be discovered negligent for failing to put up an attendant?
Now suppose that the barge proprietor had a 3rd choice: put up the attendant solely throughout the day. The info for this choice are as follows: Value of care $50, Chance of an accident zero.10, and Damages $400.
(b) Assume that the barge proprietor’s solely two choices are “no attendant”and “put up an attendant throughout the day.” In this case, would the proprietor’s failure to put up an attendant be judged negligent by the marginal Hand Rule?
(c) Assume that, prior to the accident, the proprietor had posted an attendant throughout the day. Suppose that the sufferer claims that the proprietor is negligent for not having posted the attendant for 24 hours. Use the marginal Hand Rule to evaluate the merits of this claim.
(d) For every of the three choices: “no attendant,” “attendant throughout the day,”and “attendant for 24 hours,” calculate complete anticipated prices (prices of care plus anticipated damages). Which choice minimizes this complete? Reconcile the end result together with your solutions to (a)-(c).
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