The Equilibrium Hedonic Wage Function Is Most Likely

Multiple Choice

The equilibrium hedonic wage function is most likely

A) horizontal as no firm will overpay for workers.
B) horizontal as firms will choose their optimal level of safety.
C) a single point, as all firms will choose the same level of risk, and consequently all workers will be paid the same wage.
D) upward sloping as firms that offer riskier jobs usually pay higher wages.
E) downward sloping as firms that offer riskier jobs are usually able to pay lower wages.