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 the total cost of hiring a worker would be ______ at the new firms and ______ at the existing firms.

A) $33,700; $35,700
B) $34,700; $35,000
C) $35,000; $34,700
D) $35,700; $33,700