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(Solved): There are 100 jobs in a town and 100 workers. Forty of the jobsare dangerous, 60 are safe. Workers h ...



There are 100 jobs in a town and 100 workers. Forty of the jobsare dangerous, 60 are safe. Workers have the following preferences:worker one dislikes danger by $1, worker two dislikes danger by $2,worker three dislikes danger by $3, and so forth (such that workerhundred dislikes danger by $100). Assume workers are mobile andwell-informed and the labor market is mobile. Also assume that safejobs pay $500 a week.

Which of the following statements will be true?

A) Dangerous jobs will pay $540 a week. B) Worker one will earnrents of $39. C) Worker hundred will earn rents of $60. D) All ofthe above are true.



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