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When minimum wage increases for workers this affects the supply curve upwards for the company. This will mean that the cost goes up which pushes the curve to the left.
When minimum wage increases for workers this affects the supply curve upwards for the company. This will mean that the cost goes up which pushes the curve to the left.
The question doesn't provide any curve, because that's impossible on Answers.com. However it's easy to determine the equilibrium wage in a perfectly competitive market by equating the market demand for labour with the market supply of labour.
?Perfect competition in a resource market means that there are
many small buyers of the resource, and that none can influence
the market. The supply curve is identical to the marginal
resource cost curve (MRC), and is horizontal. The wage is given
directly by the intersection of the supply line and MRP curve
(which is the demand for labor).
The Phillips curve's relevance to less developed countries is that it serves as a frontier. These countries set the pace for the entire wage structure.
The reservation wage is the slope of the indifference curve tangent to the endowment point.
MRS = w = MUL/MUC
It can also be found by (non-labor income)/(total hours)
