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Prices of tickets for seats on commercial passenger planes are typically in the hundreds of dollars, whereas trips can be made by automobile at much lower cost. Accident rates per person per trip in the airline industry are considerably lower than auto accident rates per person per trip. Based on these facts, discuss how regulatory costs and benefits may help to explain why government regulations require children to be placed in safety seats in automobiles but not on commercial passenger planes.
A. The average benefit of using child safety seats in automobiles equals the average cost of installing them, but the average benefit of using them on commercial passenger planes exceeds the average cost of installing them on planes.
B. The expect benefit of using child safety seats in automobiles i much lower than the expected benefit of using them on commercial passenger planes.
C. The expected benefit of using child safety seats in automobiles is much higher than the expect benefit of using them on commercial passenger planes.
D. The marginal benefit of using child safety seats in automobiles equals the marginal cost of installing them, but the marginal benefit of using them on commercial passenger planes exceeds the marginal cost of installing them on planes.
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