Firms will reduce job safety as long as:

Question

Quizplus · Accepted Answer

Firms will only reduce job safety if the potential cost savings outweigh the costs of wage increases that may be necessary to attract workers to risky jobs. Therefore, option A is the correct choice. Option B is incorrect because if the potential cost savings are less than the wage increases, then the firm would not reduce job safety. Option C is incorrect because the question does not mention anything about the marginal cost of safety. Option D is incorrect because the question states that firms will reduce job safety, which implies that the marginal benefit of safety is not very large.

Firms Will Reduce Job Safety as Long As