Suppose That All Workers Value a Safe Job $2,000 Per

Multiple Choice

Suppose that all workers value a safe job $2,000 per year more than a risky job. The cost to firms of providing a safe job is $700 per year for each worker. Firms currently pay workers $35,000 per year, without any effort to improve safety. If new firms began to offer workers $34,000 per year and safe jobs, then

A) no workers would apply for jobs at the new firms.
B) only low-quality workers would apply for jobs at the new firms.
C) only injury-prone workers would apply for jobs at the new firms.
D) all workers would apply for jobs at the new firms.