= 434523.81 1.05 Chef 500000 = 476190.48- 40000 = 436190.48In this situation Jen would pursue to be a chef. b) Limnologist 472000 = 410434.78 15000 = 39543.78 1.15 Chef 500000 = 434782.61 40000 = 394782.61 1.15In this situation Jen would pursue to be limnologist.Theoretical Questions1. 2. a) The worker with the riskier job will move down to lower indifference curve. They would be moved down to a lower indifference curve because their job would not be as riskier anymore so the rate of pay would then decrease. The same worker in a safer work environment would not be affected as they are already on the level that the riskier worker has now been moved to.b) If perfect information was relaxed then the worker in the riskier environment may not change as he/she may now be happier. The safer worker may be happier also as he/she will move upwards on their indifference curve.c) If workers did not have mobility then they may be forced to move downward on the indifference curve as their firm may be the only firm that can employ them. Because of this they may be forced to stay with that firm and do not have the opportunity to seek employment with another firm in the same industry that may offer increased benefits, wages or a higher indifference curve for them.d) A compensating differential would not occur in a monopolistic market as the monopolist could offer the same wages at relatively any risk level due to their power in determining prices in the market place....
