Question: Suppose all workers have the same preferences represented by U = w ^ 3 - ( 1 2 x ) ^ 0 . 5 where

Suppose all workers have the same preferences represented by U=w^3-(12x)^0.5 where w is the wage and x is the proportion of the firms air that is composed of toxic pollutants. There are only three types of jobs in the economy, a clean job (x =0). a semi-clean job (x =0.5). and a dirty job (x =1). Let w0 be the wage paid by the clean job and w1 be the wage paid for doing the semi-clean job. If the clean job pays $15 per hour ; a. what is the wage in semi-clean jobs ? b. what is the wage rate in dirty jobs ? c. what is the compensating wage differential between these jobs ?

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