The imposition of an effective minimum wage in a non-competitive industry might result in
A) workers earning a lower wage.
B) more workers being hired.
C) higher firm profits.
D) a decrease in labor supply.
E) an increase in labor demand.

Question

Quizplus · Accepted Answer

In a non-competitive industry, an effective minimum wage can lead to more workers being hired if the wage is set above the equilibrium level, as it can increase the purchasing power of workers, leading to higher demand for goods and services, which in turn can increase the demand for labor.

The Imposition of an Effective Minimum Wage in a Non-Competitive