In the aftermath of California and New York becoming the first states to raise the statewide minimum wage to $15, some small businesses with hourly workers are rethinking how they can absorb the increase. According to an article by Joyce Rosenburg,https://www.stltoday.com/business/local/as-minimum-wage-marches-toward-small-businesses-adapt/article_f2e44b8a-4cba-5edd-82be-2c4a17942abc.html
one restaurant may have owners pick up food at a counter instead of delivering it to tables. It may also have workers do more tasks, for example, a cashier doing some administration. Rosenberg notes some businesses are cutting staff, others are raising prices. Meanwhile a pizza chain in Washington DC is giving raises without raising prices because of solid revenue growth. A smoothie business in NYC suburbs has raised prices 30%, https://smartwriterblog.com/operations-management-homework-help/discussion-3/ as has a seafood restaurant chain in Seattle. It is also a fact that a manufacturing firm in Seattle is replacing some labor with technology. Using production and cost theory, and profit maximization rules, contrast and discuss these different reactions, and perhaps discuss https://perfectwriterblog.com/economics/im-working-on-a-economics-question-and-need-a-sample-draft-to-help-me-understan/ how the different responses gives us some insights about how much market power the different businesses have.