What happens to employment-output and total income of worker

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An economy has the following cobb-douglas production function: Y=K1/3L2/3. The economy has 1000 units of capital and a labor force of 1000 workers. Congress cannot dictate how many workers firms hire at the mandated wage. Given this fact, what are the effects of this law? What happens to employment, output, and total income of workers? Will congress succeed in its goal of helping the working class? Explain. do you think that this analysis provides a good way of thinking about a minimum wage law? Why or why not?

Reference no: EM13214346

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