Using an appropriate diagram, show and explain briefly how a rise in the minimum wage could result in higher employment in a monopolistic labor market. Could a similar increase in employment accompany the rise in the minimum wage if the labor market is not monopolistic? Explain your reasoning.© BrainMass Inc. brainmass.com March 4, 2021, 8:50 pm ad1c9bdddf
See the attached file. Because the monopolist's marginal cost curve is above the supply curve, it can lower costs by offering W1. If a minimum wage W2 were ...
Minimum wages and employment level in monopolistic markets.