Assume the labor market is not perfectly competitive

Reference no: EM13668379

2. Job Training:
A clothing retail store is considering putting its workers through a training program. Untrained workers currently contribute $100 per day, trained workers contribute $150 per day, and workers in training contribute -$20 per day (training them costs the firm
money). Training takes one week (five working days per week), and expects workers to stay for an average of 6 weeks after being trained. Employers choose to train their employees if the total benefits to the company over time are equal or greater than the
total costs over time (ignore discounting).
(c) Next, assume the labor market is not perfectly competitive, and that firms can pay their employees $10 less per day than they bring in while retaining their employees. Now, given the same minimum wage and training program, do they choose to train their employees?

Reference no: EM13668379

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