1) Based on these numbers how many employees should be used? (Wage/MRC = $15, Price = $3) # of employees Output MPL MRP 1 50 2 60 66 4 71 A) Show what this would look like graphically with MRP & wage (MRC). Then show what would happen if the wage increased. B) Some politicians have stated that they would be in favor of raising the minimum wage to $15 per hour. What would happen to the wage that some workers would make, and what would happen to the unemployment rate?

1) Based on these numbers how many employees should be used? (Wage/MRC = $15, Price = $3) # of employees Output MPL MRP 1 50 2 60 66 4 71 A) Show what this would look like graphically with MRP & wage (MRC). Then show what would happen if the wage increased. B) Some politicians have stated that they would be in favor of raising the minimum wage to $15 per hour. What would happen to the wage that some workers would make, and what would happen to the unemployment rate?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An effective minimum wage imposes a price ceiling on the wages of various categories of low-skill workers. increases the demand for low-skill workers. makes it easier for low skill workers to find jobs. O increases the earnings of some low-skill workers while reducing the employment and training opportunities available to others.
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