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Aliyah is a single woman with preferences given by U(w, p) = w - 5 , , where w is the hourly wage she is
Aliyah is a single woman with preferences given by U(w, p) = w - 5 , , where w is the hourly wage she is paid and p is the probability of a fatal injury occurring on the job. In her occupation, firms offer wages given by w = 10 + 25p . Aliyah is offered a job at different firms, one that has taken many safety precautions such that p = 0.01 and one at a more dangerous firm with p = 0.05 . What is the wage offered by each firm
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