Probability of Loss must be a greater amount than a Burden of doing nothing to create a duty of due care.
If the harm could be avoided for less than the cost of the harm (B is less than PL), then the individual should take the precautions, rather than allowing the harm to occur. If precautions were not taken, we find that a legal duty of care has been breached, and we impose liability on the individual to pay for the harm.
This approach, in theory, leads to an optimal allocation of resources.
en.wikipedia.org/wiki/Calculus_of_negligence
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