How will a government-imposed minimum wage affect the equilibrium level of employment in a competitive labor market and in a monopsony labor market?

What will be an ideal response?

In a competitive labor market, a minimum wage should reduce the equilibrium level of employment. In the case of a monopsony, imposing a minimum wage removes market power from the single firm and encourages the firm to hire more workers than it would otherwise.

Economics

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What other curve is the same as the market supply curve? Why are the curves the same?

What will be an ideal response?

Economics

Based on our study of market failure and government failure, the main conclusion that one should arrive at is that

What will be an ideal response?

Economics