In which circumstance would the introduction of a minimum wage be most likely to increase both employment opportunities and wages?
- AFirms face intense competition both at home and abroad.
- BLabour costs are a high proportion of the total cost of the firm.
- CThe minimum wage is not high enough to lower the profits of the firms.
- DThe minimum wage introduced in monopsony is less than the marginal revenue productivity (MRP) of the last worker employed.