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6. Under standard hedonic wage theory, government workplace safety laws are normally regarded as harming some employees. However, government safety standards can be justied under
6. Under standard hedonic wage theory, government workplace safety laws are normally regarded as harming some employees. However, government safety standards can be justied under hedonic wage theory if labor market imperfections are present In this problem, you will explore these ideas graphically. er Curve Workplaoo Safely Consider Marsha, whose indifference curves are shown above in red. Marsha has recently moved to a new town and found a job in a factory where there is a risk of injury. Marsha took the job when she had imperfect information about how risky the job was. Specically, while Marsha knew that she would earn a wage of w at the factory, she incorrectly believed that her workplace safety level would be 5', which would have given her a utility level of U. in other words, Marsha had incorrect information about the offer curve. Marsha's safety at work is at the lower level 5'\
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