Which of the Following Is the Most Likely Outcome of Minimum

question 201

Multiple Choice

Which of the following is the most likely outcome of minimum wage laws?

• A) an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
• B) an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms
• C) a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms
• D) a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firms

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Definitions:

Monopolist

An entity or individual that has exclusive control over the supply of a good or service, enabling them to manipulate market prices.

Unregulated Monopolists

A single supplier in a market without government intervention or regulation, potentially leading to higher prices and lower outputs.

Marginal Cost

The additional cost incurred when producing one more unit of a good or service.

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, representing the surplus generated beyond the opportunity cost.