Explain the impact on a firm due to an increase in the minimum wage.
The firm’s costs will increase as they will have to pay each worker more per hour due to the new minimum wage. This means that they will have less profits for their shareholders, and less money to invest. However, this will depend on how much the firm paid their worker originally.A higher minimum wage will mean people will have a greater disposable income. Therefore, a firm’s revenue may increase as people will have more money to spend.
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