Disadvantages or free market arguments towards a national min wage

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Dreamville1
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#1
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Just thinking of responses to this, I have thought of reforming tax credits
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username2337813
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Increases firms' costs of production
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Dreamville1
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(Original post by hxfsxh)
Increases firms' costs of production
would you follow up with the whole less money to become more efficient, thereby missing out potential for cheaper goods/services for consumers?
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username2337813
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(Original post by Dreamville1)
would you follow up with the whole less money to become more efficient, thereby missing out potential for cheaper goods/services for consumers?
Yeah, limit to dynamic efficiency and ability to price discriminate
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Dreamville1
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(Original post by hxfsxh)
Yeah, limit to dynamic efficiency and ability to price discriminate
cheers, what do u mean by ability to price discriminate though?
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username2337813
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(Original post by Dreamville1)
cheers, what do u mean by ability to price discriminate though?
So for a larger firm e.g. monopoly/high concentration ration, by imposing higher costs on them, they have reduced profit margins so they have to compromise on their ability to price discriminate i.e. charge different prices to different consumers for the same product.
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Dreamville1
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(Original post by hxfsxh)
So for a larger firm e.g. monopoly/high concentration ration, by imposing higher costs on them, they have reduced profit margins so they have to compromise on their ability to price discriminate i.e. charge different prices to different consumers for the same product.
Ohh right yeah I follow that
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