You are the owner of a large online retail company selling second-hand textbooks to students studying in the UK. You currently employ 17 unskilled workers to dispatch the books who are paid the National Living Wage of £8.91 per hour. You also employ 6 semi- skilled workers to check payment and perform other routine administrative duties. These workers are paid £10.50 per hour. A friend of yours, who is an economist at Lancaster University, informs you that wages are predicted to rise the UK and that, as a result of this, he predicts that the National Living Wage will rise to £9.65 per hour in April 2022. Discuss the implications of this legislative change on your company's operations and, in particular, the implications for your optimal mix of inputs and long-run investment decisions.

You are the owner of a large online retail company selling second-hand textbooks to students studying in the UK. You currently employ 17 unskilled workers to dispatch the books who are paid the National Living Wage of £8.91 per hour. You also employ 6 semi- skilled workers to check payment and perform other routine administrative duties. These workers are paid £10.50 per hour. A friend of yours, who is an economist at Lancaster University, informs you that wages are predicted to rise the UK and that, as a result of this, he predicts that the National Living Wage will rise to £9.65 per hour in April 2022. Discuss the implications of this legislative change on your company's operations and, in particular, the implications for your optimal mix of inputs and long-run investment decisions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please answer
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