Not deciding yet Essay Example | Topics and Well Written Essays - 500 words

Not deciding yet - Essay Example In other words, we can also say that the gradual increase in the minimum wage rate will show relatively negative values of the employment rate in the US labor market. The maximum wage rate will result into the highest negative value of the employment rate. These statistics are shown in the research study conducted by the Federal Department, which was conducted to check the implications of the proposal of increase in the minimum wage rate maximum up to $ 9 – 10 / hour. In case of a perfect competition in the market among different firms, all the resources are equally available to all the possible market players. The firms are facing a neck-to-neck competition between each other competitive firm. In this situation, every decision should be taken very carefully because the firm managers will have to compete with many other game players also. Therefore, according to my opinion an increase in the minimum wage rate in case of a perfect competitive market will cause a decrease in the employment rate of that particular labor market. Because if any State or Government is increasing the wage rates then firms or the employers still have other options available to hire the cheap labor from where it is available. In case of a monopolistic competition, all the firms have individual products and services; they are not competing directly with each other just because of the reason that their products are not exactly substitute to each other. In case of a monopoli stic competitive market, the increase the minimum wage rate may also cause an increase in the employment rate just because of the reason that every firm will require certain skills and expertise for their production. They cannot hire any available labor if they are cheap as compare to the home market. The products and services of the firms are not similar to each other therefore; there will be certain set of skills, which is required by any manager of the firm. Therefore, we can predict that in case of a