In a competitive labor market, the equilibrium wage rate and the
number of workers employed are determined by labor supply and labor
demand. Firms maximize profit where the MRP = MRC and hence hire
labor up to this point. However recently, the president proposed
minimum wage of $10.10. While it could be argued that wage should
be determined by among other factors - its productivity, What do
you think could be the impact of this minimum wage mandate on
business profit and employment and US global competitiveness?