Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Problems and Applications - Page 411: 2

Answer

One reason for the two-tiered minimum wage system is that teenagers have no experience or little experience (compared to adults).

Work Step by Step

Another reason for the two-tiered minimum wage system is that teenagers have a lower marginal product value than adults.
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