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Suppose That All Workers Value a Safe Job $2,000/year More

Question 13

Multiple Choice

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


A) no workers are applying for their jobs.
B) only lower quality workers would apply for their jobs.
C) only injury prone workers would apply.
D) workers would be willing to accept their offer.

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