iv)A worker must be paid a minimum amount as remuneration for the work done by the workers during a specific time and the amount is not chargeable by any agreement be it collective or individual.this entire phenomena is called minimum wages.it is set by the government.if the government proposes to increase the level of minimum wage rate for workers.it creates a stress economically on the business owners.Due to this labour cost will increase.hence the productivity cost will also rise which will definitely have an effect on the profit margin.moreover business will not appoint less skilled workers at low wages.as there is increase in minimum wage rate it is increasing the labour cost leading to the increase in production cost which is contributing to increase in prices of products by the business in order to meet their profit requirements.
c) amidst economic crisis, demand is declining.business can take actions for maintenance of their sales.1) advertisement:by advertisement they can increase their sales effectively.it is used for product differentiation and hence demand curve is made more inelastic.
2) product differentiation: sales will be increased,when firms wants to maximize their profits and this is when MC=MR.product differentiation helps in acquiring a certain degree of control of the market which will lead to increase in demand.