In Probability of Injury (x-axis) versus Wage (y-axis) space, isoprofit curves slope upward because
A) profits increase with the number of workers the firm employs.
B) workers are willing to accept a lower wage in exchange for a riskier work environment.
C) the firm does not like to pay higher wages.
D) profits are constant with respect to risk.
E) in order to keep profits constant, a higher wage must be offset by the firm saving money by not investing as much in preventing on-the-job injuries.

Question

Quizplus · Accepted Answer

In order to keep profits constant, a higher wage must be offset by the firm saving money by not investing as much in preventing on-the-job injuries, leading to an upward slope of isoprofit curves.

In Probability of Injury (X-Axis) Versus Wage (Y-Axis) Space, Isoprofit