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Suppose that all workers value a 1 percent reduction in the workplace injury rate at $1,000 per year. The cost of reducing the injury rate by 1 percent is $200 per year for each worker. Firms currently pay $20,000 per year to workers, without any effort to improve safety. If new firms began to offer workers $19,500 and a 1 percent reduction in the injury rate, then the total annual cost of hiring a worker would be ______ at the new firms and ______ at the existing firms.
Adrenalin
Also known as epinephrine, a hormone and medication which increases heart rate, muscle strength, blood pressure, and sugar metabolism, often in response to stress.
Circadian Cycle
A natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.
Cortisol
A steroid hormone produced by the adrenal glands, which plays a vital role in the body's response to stress.
Sleep-Wake Cycles
The natural, cyclic pattern of sleep and wakefulness in humans and other animals, governed by internal biological clocks and influenced by environmental factors.
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