suppose all perfectly competitive fast-food firms are hiring the profit-maximizing quantity of labor and are paying their workers $7 per hour. then suppose the government decides to raise the minimum wage to $8 per hour. then: a since the marginal revenue product would exceed the wage, firms would hire more workers. b the firms would increase their prices to keep the marginal revenue product equal to the wage. c firms would be unable to alter their hiring because the minimum wage is set by the government. d firms would have to exit the industry since the marginal revenue product is less than the wage. e since the marginal revenue product would be less than the wage, firms would lay off some workers.
