Econ question

5.) (12 points) Suppose that all workers dislike working in a hostile work environment. In particular, the utility function for all workers is given by: U = -5x + V (30w) Where w is the wage rate offered by the job and x is the fraction of the firm's employees that are hostile. Assume that there are only friendly jobs (x = 0) and fully hostile jobs (x = 1) and workers have full information on the level of hostility on the job. Let wo be the wage per hour paid in a friendly job and wi be the wage per hour for the hostile job. If the utility received by workers in safe job is the same as those in hostile jobs and if the safe job pays $7.50 per hour, what are workers paid in hostile jobs and what is the market compensating wage differential? b. Graph the Hedonic Wage Function below and label the equilibrium for the safe job (point A) and the hostile job (point B). Remember, there are two types of workers, two types of jobs and the Hedonic Wage Function. Label everything. c. How would new government regulations requiring all employers and employees to undergo sensitivity training and forcing work environments to all be safe (x = 0) impact the utility of workers and profits of firms that were initially at point B above. No graph needed, just explain