A company launches a fleet of autonomous delivery drones in a city. Initially, there are frequent, minor incidents where drones damage private property (e.g., breaking roof tiles, damaging garden plants). In response, a new law is passed that makes the drone company strictly liable for any property damage its drones cause. Which of the following statements best analyzes the primary economic consequence of this new liability law on the company's operations?
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A company launches a fleet of autonomous delivery drones in a city. Initially, there are frequent, minor incidents where drones damage private property (e.g., breaking roof tiles, damaging garden plants). In response, a new law is passed that makes the drone company strictly liable for any property damage its drones cause. Which of the following statements best analyzes the primary economic consequence of this new liability law on the company's operations?
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