. The minimum wage of $8 an hour is not efficient because it creates a deadweight lossthe...

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. The minimum wage of $8 an hour is not efficient because it creates a deadweight loss—the marginal benefit to growers exceeds the marginal cost to workers. Tomato pickers who find work at $8 an hour gain. Tomato growers and unemployed pickers lose. The minimum wage is unfair on both the fair-rules and fair-result views of fairness.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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