The market for unskilled labor is illustrated in the figure above. If a minimum wage of $5 per hour is imposed, an employer who breaks the law will be able to find a worker who is willing to work for
A) less than or equal to $4 per hour.
B) between $4 and $5 per hour.
C) more than or equal to $5 per hour.
D) None of the above because workers are not willing to supply labor for wage rates less than $5 per hour.
A
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Externalities can be internalized through voluntary agreements as long as
A. transaction costs are low relative to expected benefits. B. transaction costs are high relative to expected benefits. C. the agreement is a short-run agreement. D. the agreement is a long-run agreement.
Refer to the table below. If Fresh Laundry is currently producing 10 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; equal to
B) decrease; less than
C) maintain; less than
D) maintain; equal to
A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost
a. True b. False Indicate whether the statement is true or false
Resources are unlimited in a wealthy society.
Answer the following statement true (T) or false (F)