An employer would not be able to hire an unskilled employee for the same amount of a skilled employee, who has been employed longer. Also, a raise in minimum wage would cause fewer turnovers, which costs the employer less, due to not having to train new employees
c) C. A nonunion work force allows a corporation more freedom of movement. A unionized work force has restrictions, allows workers to strike and create work stoppages, higher wages may be paid to workers which would affect corporate profitability. d) D. Inflation deteriorates the value of money, the company can afford to buy less materials/workforce with the same amount of capital as before. e) E. A technological breakthrough would reduce cost of production creating competitive advantage and long term
Something that requires much more machine hours will appear to have a lower cost, when in fact it could be costing the company a great deal more. The consultants system is the best out of the three because it most clearly directs costs to a pool. The machine hour rate due to overhead is a lot higher in the mechanical room then the main room. Therefore products that spend more hours in
Even though union members—those who keep their jobs--- get their wages increased and enjoy improved working conditions and benefits, the economic issues that most unions brings to the United States outbalance the positive effects. As the United States competes with the rest of the world, firms struggle when one of their highest costs is directly related to labor. In the article Labor Unions by Morgan Reynolds, the author accurately explains this phenomenon: while higher wages are successfully achieved, they simultaneously reduce the number of jobs available in unionized firms. This occurs because of the basic law of demand: once prices of labor rise, then employers will purchase less of it. Hence such members’ benefits are achieved at the expense of consumers, nonunion workers, already unemployed people, taxpayers, and corporation owners (Reynolds,
It states that wealth can be obtained by anyone that is willing to work for it and God will provide you with it at some point, viewing the poor as lazy people. And another political cartoon was published in Frank Leslie’s Newspaper (Doc F) which mocks labor unions and that they were associated with anarchists and socialists. Employers attempted to hinder the success of the labor unions. According to the “testimony of a machinist before the Senate” there was a rise in unskilled labor (Doc D). Employers no longer needed as much workers to do the same tasks.
They would work hard to succeed because they had less than the American citizens. They worked fast and efficient creating a large add to surplus, they create a demand for outside supplies, which is felt in every department of business. There is more supply and demand, which increases the consumption of coal, and helps expand the railroads. (Doc 3) Immigrants would also act as strikebreakers. This would help benefit businesses because if workers were to go on strike, they wouldn’t have to stop or slow down production.
The minimum wage is a form of coercion in which it forced employers to hire at an arbitrary price that otherwise wouldn't be used if not for the government's intervention. The minimum wage causes a few detrimental effects. By raising the minimum wage the employer would either have to fire workers because they cannot keep up with the wages or raise the prices of their products which don’t benefit the so called 99%. Another point is that there doesn't need to be a minimum wage because the superseded fear is that businesses will hire at super low wages caused by collusion. Well contrary to this popular belief the real world doesn't work this way at all.
Unemployment rates were steadily on the rise just a few months ago and corporate profits are at all time highs. This will lead to companies not hiring workers and a sluggish job recovery rate. Technology is replacing the uneducated worker at an alarming rate as machines increase labor productivity faster than other areas of the economy can absorb the now surplus of labor. This doesn’t mean we need to slow technology, just that we need to be a more educated society. Another link to the great depression would be the precious metals market.
There are still many people who criticize and oppose the raising the minimum wage. Many believe that increasing the minimum wage would maximize the unemployment rate when in reality it would actually create more job opportunities. This is because increasing the minimum wage will require high relative price for unskilled labor which concludes that firms will have a high demand for skilled labor. The increase of minimum wage increases earnings and reduces
Large firms tend to benefit more due to several factors from economies of scale; this means that the firm can benefit from falling average costs in the long run – however small firms cannot achieve such benefits. For example purchasing benefits whereby large firms are able to bulk buy raw materials as they are producing on a larger scale thus are able to receive discounts and therefore reducing production costs. Or they may experience technical economies whereby investment in more advanced machinery or larger premises will allow firms to experience increasing returns to scale where output is greater than input thus improving productive efficiency through division of labour and specialisation resulting again in lower costs. Economies of scale can be illustrated in diagram 1, whereby when output increases (Q to Q1), cost decreases (C to C1). Minimum efficient scale is illustrated at the constant part of the LRAC labeled QA firms are operating at the optimum point experiencing constant long run average costs where economies of scales are exhausted; the firm therefore is operating at long-run productive efficiency.