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.
MK
Related Economics GCSE answers
All answers ▸Following Teresa May's Brexit speech, the UK exchange rate in terms of euros depreciated from 1.13 to 1.08. If a firm sells 20000 units at 4 euros per unit, what is the difference in the firms revenue following the change in the exchange rate?
A small, independent fast-food shop is considering whether or not to introduce a new machine to speed up production. The machine would be able to produce burgers to order and enable the production of burgers to be split into different stages so that each
Discuss the factors causing the demand for the iPhone to shift to the right.
Explain what the possible results could be from increasing the Euro/US dollar exchange rate (you are Euro)