3. Imagine that a fast-food firm has the option of hiring either high-school graduates or high-school dropouts

Question:

3. Imagine that a fast-food firm has the option of hiring either high-school graduates or high-school dropouts as front-line workers and that the local going wages of these two groups are $12 and $9, respectively. Now suppose the local minimum wage has just been raised from $8 to $10 per hour. Based on the analysis in this chapter, how is this change likely to affect the firm’s demand for high-school graduates?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: