Read the news story about producers of disposable gloves and their workers, “The world’s top suppliers of disposable gloves are thriving because of the pandemic. Their workers aren’t”, on CNN (https://cnn.it/332zg9J).
Write an essay to answer the following questions:
1.Identify which model of market structure best describes each of the followings: (1) the market for disposable gloves, and (2) the market for the workers’ labour. *(should be oligopoly & perfect competition)
2.Discuss how profitable the producers of disposable gloves were before the Covid-19 pandemic according to the prediction of the model that you identify in Question #1. Discuss whether you think the actual economic- and accounting profits of these producers were as predicted by the model.
3.Discuss how high/low wages of the workers were before the Covid-19 pandemic according to the prediction of the model (that you identify in Question #1). Discuss whether you think the actual wages of these workers were as predicted by the model.
[ 300 words]
4.Using the models (that you identify in Question #1), analyse why the effects of the Covid-19 pandemic on the two markets differ: Why the profits of disposable glove producers increases during the Covid-19 pandemic but the welfare of their workers remains the same.
5.Using the model (that you identify in Question #1), analyse what happens to the workers if the government increases the minimum wages: Will it improve the welfare of the workers?