The government sets a minimum wage higher than the equilibrium market wage rate. According to marginal revenue product (MRP) theory, what impact will this have on low-paid workers?
- AAll those initially in employment will receive the new guaranteed minimum wage.
- BFewer of those not already in employment will enter the labour force.
- CThere will be an increase in the number of low-paid workers in employment.
- DSome low-paid workers will lose their job.