The following comments were made by two employers regarding a proposed increase in the federal minimum wage:

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The following comments were made by two employers regarding a proposed increase in the federal minimum wage:
Dillon Edwards, founder of Parlor Coffee: "[The increase] should definitely be [to] more than [$8.75 an hour].... It needs to be at least in double digits."
Beth Fahey, owner of Creative Cakes: "If you raise the minimum wage ... I can't raise everybody. If I do, the price of a doughnut is going to be $3 and nobody's going to buy it."
Briefly explain for which employer is the marginal revenue product of labor likely to be greater.
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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