You are the manager of a large but privately held online retailer that cur- rently uses 17 unskilled workers and 6 semiskilled workers at its ware- house to box and ship the products it sells online. Your company pays its unskilled workers the minimum wage but pays the semiskilled workers $7.75 per hour. Thanks to government legislation, the minimum wage will increase from $6.55 per hour to $7.25 per hour on July 24, 2009. Discuss the implications of this legislation on your company’s operations and in particular the implications for your optimal mix of inputs and long-run investment decisions.

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