Question: 5-4. Suppose all workers have the same preferences represented by U = Vw -2x, where w is the wage and x is the proportion of

 5-4. Suppose all workers have the same preferences represented by U

5-4. Suppose all workers have the same preferences represented by U = Vw -2x, where w is the wage and x is the proportion of the firm's air that is composed of toxic pollutants. There are only two types of jobs in the economy, a clean job (x = 0) and a dirty job (x = 1). Let wo be the wage paid by the clean job and w, be the wage paid for doing the dirty job. If the clean job pays $16 per hour, what is the wage in dirty jobs? What is the compensating wage differential

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