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Question
If a perfectly competitive firm is currently employing workers to the point where the value of the last workerʹs marginal product is equal to the wage rate, and the government imposes a minimum wage higher than the value of the workerʹs marginal product, we can predict that
A) the firm will pay the higher wage rate and not change the number of workers hired.
B) the firm will no longer employ the marginal worker.
C) the firm will increase its price.
D) the firm will employ more workers.
Answer
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Related questions
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