A steeply sloped isoprofit curve,with wages on the vertical axis and risk of injury on the horizontal axis,indicates that
A) injury levels can be reduced easily and inexpensively.
B) it would be very expensive to increase safety in the workplace.
C) the industry is very competitive.
D) the industry will pay only small compensating differentials.

Question

Quizplus · Accepted Answer

A steeply sloped isoprofit curve indicates that increasing safety in the workplace would result in significant costs for the industry, potentially reducing overall profits. This suggests that the industry may be willing to accept higher levels of risk of injury in order to maintain profitability.

A Steeply Sloped Isoprofit Curve,with Wages on the Vertical Axis