Asked by Alexis Goodman on Sep 24, 2024
Verified
An employer faces a minimum wage control where it cannot pay its workers any less than $10.25 an hour.The employer knows that the workers value the jobs and are willing to work even at much less.The employer decides to offer them the minimum wage,but successfully stops other sellers of work uniform from sell uniforms to its workers so that he can charge more for the ones he sells.This is an example of
A) Tying
B) Bundling
C) Exclusion
D) Fraud
Exclusion
The practice of blocking competitors from participating in a market.
Minimum Wage
The lowest hourly rate employers can legally pay their workers, as set by government law.
Uniforms
Standardized clothing worn by members of an organization while participating in that organization's activity.
- Comprehend the consequences of minimum wage laws on the operations of employers.
Verified Answer
DC
Danielle Covas2 days ago
Final Answer :
C
Explanation :
This is an example of exclusion, where the employer is exerting market power by preventing other sellers from entering the market, and ultimately charging a higher price for the uniforms. This is not tying, which involves forcing customers to purchase one product in order to purchase another, nor is it bundling, which involves selling multiple products together for a reduced price. It's also not fraud.
Learning Objectives
- Comprehend the consequences of minimum wage laws on the operations of employers.