Many cooks in restaurants currently earn above the minimum wage whereas most dishwashers and servers are paid the minimum wage. Would the increase in minimum wage be likely to increase or decrease employment of cooks? Explain. What are the scale effects and sub stop effects on for cooks? (Assume that cooks are substitutes for dishwashers) Explain.

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The impact of an increase in the minimum wage on employment is a topic with varying perspectives In this scenario lets analyze the potential effects o... View the full answer