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The Wage Differential Between a Safe and Risky Job Is

Question 7

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The wage differential between a safe and risky job is $5,000.Which of the following is not true?


A) The marginal worker is indifferent between working the safe or risky job.
B) All but the marginal worker in safe jobs require a wage differential above $5,000 to accept a risky job.
C) All but the marginal worker in the risky job require a wage differential below $5,000 to be indifferent between safe and risky jobs.
D) The per-worker cost for any firm to change technologies to offer safe jobs in place of risky jobs is $5,000.
E) The average per worker cost of offering safe jobs exceeds $5,000 at the risky firms.

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