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You are the manager of a large but privately held online retailer that currently uses 17 unskilled workers and 6 skilled workers. Your company pays
You are the manager of a large but privately held online retailer that currently uses 17 unskilled workers and 6 skilled workers. Your company pays its unskilled workers the minimum wage of $10.25 per hour and pays the skilled workers $15 per hour. The government passes new legislation increasing the minimum wage from $10.25 per hour to $11 per hour. How will this change the optimal mix of skilled and unskilled workers for you (the wages paid to skilled workers does not change)? Please give an explanation.
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