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Wage increase at Walmart, economics homework help
Minimum of 150 words. This is a discussion question, not a paper, per se. Read scenario professor gave and answer questions that follow. Suppose a business experiences a sudden and large increase in the minimum salary that pays to its employees. It happened in year 2015 to Walmart or fast food restaurants in New York City.. In 2016, unemployment was so low in Denver that Walmart began to pay $ 10.50 per hour to entry level employees (over the minimum salary of $ 9.30 per hour). In North Dakota, in the recent oil boom was paying $ 16 per hour.
What impact, if any, will this have on the following?
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- the firm’s AVC (average variable cost);
- the firm’s ATC (average total cost); and,
- the firm’s MC (marginal cost)?
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