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5-6. Consider a competitive labor market that has four different jobs that vary by their wage and risk level. The table below describes each of

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5-6. Consider a competitive labor market that has four different jobs that vary by their wage and risk level. The table below describes each of the four jobs. Job Risk (r) Wage (w) 1/5 $3 1/4 $12 On WD 1/3 $23 1/2 $25 All workers are equally productive, but workers vary in their preferences. Consider a worker who values his wage and the risk level according to the utility function: u( w, r ) = w+-z Where does the worker choose to work? Suppose the government regulated the workplace and required all jobs to have a risk factor of 1/5 (i.e., all jobs become A jobs). What wage would the worker now need to earn in the A job to be equally happy following the regulation

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