economis

posted by .

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.

  • economis -

    If the wage rate for non-risky is w, the wage rate for risky should be w+10.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    8 workers together at the same rate finished a painting job in 5 hours. hour long would it take 12 such workers working at the same rate to finish the same job?
  2. Algebra II

    I don't exactly understand what needs to be done in this problem. Could someone please explain what I am supposed to be doing a bit clearer than the book?
  3. Economics

    A firm and a worker interact as follows. First, the firm can make 2 contract offers (wage, jobtype): (w, z=0) and (w, z=1) where z=0 denotes the "safe" job and z=1 denotes the "risky job. After observing the firm's contract offer(w,z) …
  4. Labor Economics

    What is the effect of an increase in the price of market goods on a worker's reservation wage, probability of entering the labour force, and hours of work?
  5. college physics

    Two workers are loading crates onto a pick up truck. Worker 1 lifts his crate straight up from the ground to the truck. Worker 2 slides his crate up a ramp which has frictionless rollers. Which statement is true about the work being …
  6. statistics

    The breakdown of workers in a particular state according to their political affiliation and type of job held is shown here. Suppose a worker is selected at random within the state and the worker's political affiliation and type of …
  7. Algebra 1

    Samantha Jones has a job offer in which she will receive #600 per month plus a commission of 2% of the total price of the cars she sells. At her current job, she receives $1000 per month plus a commission of 1.5% of her total sales. …
  8. Linear Programming

    A Company wishes to assign six of its workers to six different jobs (one worker to each job and vice versa). The rating of each worker with respect to each job on a scale of 0 to 10 (10 being a high rating) is given by yhe following …
  9. Algebra

    Two workers, if they were working together, could finish a certain job in 12 days. If one of the workers does the first half of the job and then the other one does the second half, the job will take them 25 days. How long would it …
  10. math

    Workers A and B working together can finish a job in 8 hrs.If they work together for 6 hrs.,after which worker A leaves,then worker B needs 9 more hrs to finish the job.How long does it take worker A to do the job alone?

More Similar Questions