Ford Motor Company planned to equip its 2020 line of Explorers with Firestone tires. However, Ford conducted several crash tests prior to releasing the new line of Explorers and found that the tires increased the chances of rollovers during crashes, and in turn, the expected fatality rate. Ford’s economists determine that it would cost $600 to put new tires on each Explorer. Doing so would reduce the probability of death in a car accident by .0003. Currently, the value of life used in calculations by the court system and the government is $3 million.
a. If Ford does not put new tires on the Explorers and there is a deadly car acident, would they be negligent under the Hand rule. Why?
b. If the value of life used in calculations by the court system increased to $4 million, what is the most expensive precaution that Ford would have to take in order to not be found negligent under the Hand Rule?

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)