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

question 26

Multiple Choice

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)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.
• E)profits are constant with respect to risk.

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