Solved

Suppose That All Workers Value a 1% Reduction in the Workplace

Question 70

Multiple Choice

Suppose that all workers value a 1% reduction in the workplace injury rate at $1,000.The cost of reducing the injury rate by 1% is $200 per worker.Firms currently pay $20,000 per year to workers,without any effort to improve safety.
Suppose new firms began to offer workers $19,500 and a 1% reduction in the injury rate.The new firms would find that


A) no workers are applying for their jobs.
B) their costs of wages and injury reduction exceed the costs of the existing firms.
C) workers would be willing to accept their offer.
D) only injury prone workers would apply.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents