Question

Emeril is the owner of a restaurant. He decides to raise the wages of his workers even though he faces an excess supply of labor. His decision a. might increase profits if it attracts a better pool of workers to apply for jobs at his restaurant. b. will reduce the excess supply of labor. c. is an example of the benefits of a minimum-wage law. d. All of the above are correct.

Answer 1

Answer:

In this instance,the correct answer would be option a. in the answer list or His decision might increase profits if it attracts a better pool or workers to apply for jobs in his restaurant.

Explanation:

• The restaurant is always facing an excess supply of labor attracted by lucrative wage rates provided by the restaurant management.
• By further increasing the wage, the restaurant can attract a new pool of efficient and experienced workers or employees that can improve the productive efficiency and performance of the restaurant.
• Therefore, considering all other factors as constant or fixed such as production and operational costs/expenses of the restaurant and other relevant concerns, productivity and efficiency increase and performance improvement due to the recruitment of new efficient labor pool can potentially enhance the revenue and profit level of the restaurant.