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Figure 4-9 in the Borjas textbook discusses the changes to a labor market equilibrium when the government mandates an employee benefit for which the cost
Figure 4-9 in the Borjas textbook discusses the changes to a labor market equilibrium when the government mandates an employee benefit for which the cost exceeds the worker's valuation (panel a) and for which the cost equals the worker's valuation (panel b). Now consider a new case where the cost of the benefit for the firm (C) is strictly less than the worker's valuation (B).Is there deadweight loss associated with this mandated benefit? Could you give a realistic example of such a mandated benefit where the benefits outweigh the costs, at least for some workers
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