EN$-$US

Activate Now

$$Under the Affordable Care Act

$($

ACA

$)$

$,$

$$employers with

$5$

$0$

$$or more full

$-$

time employees

$($

or the equivalent in part

$-$

time employees

$)$

$$must provide health insurance to

$9$

$5$

$\%$

$$of their full

$-$

time employees or pay a penalty to the IRS. This penalty is quite hefty

$$

$

$3$

$,$

$8$

$6$

$0$

$$per employee per year

$($

in

$2$

$0$

$2$

$0$

$)$

$.$

Small businesses with fewer than

$2$

$5$

$$employees can receive a tax credit of up to

$5$

$0$

$\%$

$$of the health insurance premiums paid. For more information, see the following links: Predict what impact this mandate might have on full

$-$

time employment for businesses with greater than

$5$

$0$

$$employees and businesses with

$2$

$5$

$$employees

In your write

$-$

up consider the short run versus the long run. Moreover, consider the impact on the firm's decision to use different inputs in its production process. show in graph