Asked by anonymous

There are 100 workers in the economy and all must choose to work either a risky or safe job. Worker 1's reservation price for accepting the risky job is $1, worker 2's reservation price is $2, and so on. There are only 10 risky jobs available. What is the equilibrium wage differential between safe and risky jobs.
Answered by economyst
If the wage rate for non-risky is w, the wage rate for risky should be w+10.
There are no AI answers yet. The ability to request AI answers is coming soon!