In Probability of Injury (x-axis) versus Wage (y-axis) space, isoprofit curves slope upward because

A. workers are willing to accept a lower wage in exchange for a riskier work environment.
B. profits are constant with respect to risk.
C. the firm does not like to pay higher wages.
D. profits increase with the number of workers the firm employs.
E. in order to keep profits constant, a higher wage must be offset by the firm saving money by not investing as much in preventing on-the-job injuries.


Answer: E

Economics

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