At the Minimum Wage (Set Above the Equilibrium Wage)

question 20

Multiple Choice

At the minimum wage (set above the equilibrium wage) ,

• A) all individuals who end up working are paid less than if they were paid the equilibrium wage.
• B) none of the workers will lose there jobs or find themselves working fewer hours.
• C) none of the individuals who end up working are paid more than if they were paid the equilibrium wage.
• D) there will be fewer people working (or fewer labor hours demanded)than at the equilibrium wage.
• E) none of the above

Identify and calculate average, marginal, average fixed, and average variable costs.

Determine the impact of external factors such as taxes and technology on opportunity costs.

Analyze the role and importance of sunk costs in economic and business decisions.

Understand the implications of fixed costs in the short and long term.