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How much does the average worker value working

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Reference no: EM131925735

The Environmental Protection Agency (EPA) wants to investigate the value workers place on being able to work in "clean" mines over "dirty" mines. The EPA conducts a study and finds the average annual wage in clean mines to be $42,250 and the average annual wage in dirty mines to be $47,250.

  1. (a) According to the EPA, how much does the average worker value working in a clean mine?
  2. (b) Suppose the EPA could mandate that all dirty mines become clean mines and that all workers who were in a dirty mine must therefore accept a $5,000 pay decrease. Are these workers helped by the intervention, hurt by the intervention, or indifferent to the intervention?

Reference no: EM131925735

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