Petrochemical industry officials have said that the extreme pressure exerted on plant managers during the last five years to improve profits by cutting costs has done nothing to impair the industry’s ability to operate safely. However, environmentalists contend that the recent rash of serious oil spills and accidents at petrochemical plants is traceable to cost-cutting measures.Which of the following, if true, would provide the strongest support for the position held by industry officials?(A) The petrochemical industry benefits if accidents do not occur, since accidents involve risk of employee injury as well as loss of equipment and product.(B) Petrochemical industry unions recently demanded that additional money be spent on safety and environment protection measures, but the unions readily abandoned those demands in exchange for job security.(C) Despite major cutbacks in most other areas of operation, the petrochemical industry has devoted more of its resources to environmental and safety measures in the last five years than in the preceding five years.(D) There is evidence that the most damaging of the recent oil spills would have been prevented had cost-cutting measures not been instituted.(E) Both the large fines and adverse publicity generated by the most recent oil spills have prompted the petrochemical industry to increase the resources devoted to oil-spill prevention.

The answer is: A) The petrochemical industry benefits if accidents do not occur, since accidents involve risk of employee injury as well as loss of equipment and product.

Explanation:

The basis for this statement would be a benefit cost analysis. Organizations make decisions by analyzing the benefits of an action versus the costs of taking that action. If the benefits are higher than the costs, then they will profit from those actions.

In this case, petrochemical industries will probably lose more money if an accident happens than the money they can save form cutting costs on safety procedures. Financially it makes more sense to prevent accidents.