Suppose That All Workers Value a Safe Job $2,000/year More

question 121

Multiple Choice

Suppose that all workers value a safe job $2,000/year more than a risky job.The cost of safety is $700 per worker.Firms currently pay $35,000 per year to workers,without any effort to improve safety.
Suppose new firms began to offer workers $34,000 per year and safer jobs.The total benefit to workers of the existing firms' offer is __________ and the benefit of the new firms' offer is __________.

• A)$0;$1,000
• B)$1,000;$1,000 00
• C)$33,000;$34,000
• D)$35,000;$36,000

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Definitions:

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A hypothesis suggesting that performance increases with physiological or mental arousal, but only up to a point, after which performance begins to decrease.

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Fast-Second Strategy

A business approach where companies quickly follow pioneers in a market, improving on their innovations or reducing costs to gain competitive advantage.

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The optimal distribution of resources to meet the needs and wants of a society, minimizing waste and maximizing value.