Suppose a state passes a minimum wage law that increases the minimum wage from $5/hour to $20/hour. the equilibrium wage prior to the minimum wage hike was $10/hour. which is likely to result from increasing the minimum wage? the state will experience full employment. the labor market will become more efficient. some employers and workers will agree on a wage of less than $20/hour and not report the wages to the government. employers will demand more labor than workers will supply. this result of increasing the minimum wage is an example of a quantity control. black market. license. quota rent.

The following data is provided for garcon company and pepper company. garcon company pepper company beginning finished goods inventory $12,600 $16,900 beginning work in process inventory 17,600 21,600 beginning raw materials inventory 7,700 10,650 rental cost on factory equipment 28,500 23,050 direct labor 23,000 39,800 ending finished goods inventory 18,500 14,100 ending work in process inventory 26,500 19,800 ending raw materials inventory 6,800 7,600 factory utilities 12,300 17,750 factory supplies used 13,000 4,400 general and administrative expenses 31,000 59,500 indirect labor 2,450 9,580 repairs—factory equipment 6,860 3,700 raw materials purchases 37,000 66,000 selling expenses 51,200 48,700 sales 238,530 337,510 cash 29,000 17,200 factory equipment, net 217,500 118,825 accounts receivable, net 16,800 24,200 compute the total prime costs for both garcon company and pepper company.