Explain the effects of providing additional safety equipment
Explain how the effects of a requirement that firms provide additional safety equipment to each worker in an industry depends on the substituability of capital for labor and the extent to which workers in the industry can find jobs elsewhere.
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Hello,
The requirement to supply safety equipment to workers has a cost. "Substituability of capital for labor" means how easy is it to replace workers with machines (a capital investment). If workers can easily be substituted for machines then the owner does not need to buy the ...
Solution Summary
The requirement to supply safety equipment to workers has a cost.
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