The Labor Market
The Labor Market
Most firms require labor to produce output. The number of workers to hire is often an important decision of the firm because it affects the costs and profits of the firm. Write a 2-3 page paper on the following issues:
1. Suppose you are the manager of the firm Planet Fitness. What advice would you give the owners to raise the productivity of its labor? Be specific in your proposal.
2. What if the government raised the minimum wage. How would this policy effect your firm (Planet Fitness)?
3. Use the readings from the background page. In general, do you think the government should intervene in the market?
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