Question
A legal minimum wage in ________ can __________ because _________ a)a competitive labour market; increase unemployment; a change in unemployment implies an equal and opposite
A legal minimum wage in ________ can __________ because _________
a)a competitive labour market; increase unemployment; a change in unemployment implies an equal and opposite change in employment
b)a monopsonistic labour market; increase employment; it reduces Marginal Factor Cost (MFC)
c)a competitive labour market; create no change in unemployment; in some cases the reduction inemployment equals the increase in labour supply
d)a monopsonistic labour market; increase employment; the legal minimum is less than the market wage ofthe profit-maximizing monopsonist
e)Both (a) and (d)
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