Question: 1] Suppose all workers have the same preferences represented by U = lr1(w] GAR, where w is the wage and :l: is the proportion of

1] Suppose all workers have the same preferences represented by U = lr1(w] GAR, where w is the wage and :l: is the proportion of the firm's air that is composed of toxic pollutants. There are only two types ofjobs in the economy1 a cleanjob [k If?) and a dirtyjob (I: I]. Let We be the wage paid by the clean job and W1 be the wage paid for doing the diny job. a] If the clean job pays 52mm per year1 what is the wage in dirty jobs? What is the compensating wage differential? b] If the dirty job increases the probability of fatal injury by IlIJIJE, what is the value of a worker's life

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