Assume all of the information from Question #11 above: If Willy actually does install the extra safety equipment, it will cost him $20,000 to do so. Based on this new information about its cost, will Willy be willing to install the new equipment?

A. Yes, because it costs him less than it is worth.
B. Yes, because it costs him more than it is worth.
C. No, because it costs him more than it is worth.
D. No, because it costs him less than it is worth.

Answer: Yes, because it costs him less than it is worth.

Economics

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