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 Uwx 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 a semiclean job x and a dirty job x Let w be the wage paid by the clean job and w be the wage paid for doing the semiclean job. If the clean job pays $ per hour ; a what is the wage in semiclean jobs b what is the wage rate in dirty jobs c what is the compensating wage differential between these jobs
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