In a competitive labor market the equilibrium wage rate and


In a competitive labor market, the equilibrium wage rate and the number of workers employed are determined by labor supply and labor demand. Firms maximize profit where the MRP = MRC and hence hire labor up to this point. However recently, the president proposed minimum wage of $10.10. While it could be argued that wage should be determined by among other factors - its productivity, What do you think could be the impact of this minimum wage mandate on business profit and employment and US global competitiveness?

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Business Economics: In a competitive labor market the equilibrium wage rate and
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