answer thus

2. Assume that there is one type of workers in a labour market with Utility Function given by: U( w,S) - WS There is only one type of firms with isoprofit curve given by:- al (w,s) = (w /, 600 ) - (s' / 4002) a) Calculate the optimal amount of wages and safety that the firm and the workers will negotiate b) In simple words, briefly explain the theory of compensating wage differentials