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Description of Minimum Wage
I need help with these questions. The teacher says that there will be questions like this on the test. Could someone please help.
1. Suppose government imposed a minimum wage above what otherwise would be the equilibrium wage rate for this segment of the labor market. Using a supply and demand framework of analysis, what do you expect to happen to employment in this segment of the labor market? (Assume that inflation and economic growth are both zero.)
2. If you were an economist for Mattel, manufacturer of the doll Barbie, which was making an unsolicited bid to take over Hasbro, manufacturer of G.I. Joe, would you argue that the relevant market is dolls, preschool toys, or all toys including video games? Why? Would your answer change if you were working for Hasbro?
3. In what market did Microsoft have a monopoly in the late 1990s? What technological advances threatened that monopoly?
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