Minimum Wage at Valvoline Instant Oil Change

The following sample Economics case study is 380 words long, in APA format, and written at the undergraduate level. It has been downloaded 123 times and is available for you to use, free of charge.

As manager of Valvoline Instant Oil Change, one of the most important duties comes with encouraging health productivity from hired labor. In order to achieve this, a number of tactics may be implemented. One should include ensuring that the proper physical capital is set in place (tools, machinery, etc.) to achieve optimal labor output. Once completed, another option should include a careful consideration of how much the labor earns. By raising the amount of pay, managers would be able to generate greater competition for the position and instill more efficient production due to the employment of more highly qualified individuals for proposed tasks.

If the government raised the minimum wage, the policy would adversely affect the lowest skilled workers at Valvoline. It will mean fewer positions available as a result of the higher cost of labor. If Valvoline chooses to keep those employees maintained, administrators may ultimately choose to raise fees for their services. This choice may result in a loss of market share as the consumer chooses more reasonably priced services from competitors for a lower price.

In general, the government should not intervene in the setting of the minimum wage. Today, the media casts doubt over whether the minimum wage would actually hurt workers by creating fewer jobs; the truth as seen by economists, however, remains undisputed: the rise of the minimum wage creates higher unemployment (Boaz, 2009, p. 1). Boaz highlights a specific change in attitude towards this subject in 1999; before, the New York Times had stood staunchly against a minimum wage for decades (p. 2-3). The issue, however, remains an emotional one for many individuals. An increase in the minimum wage counteracts the lowering of real wages for the lowest echelons of paid workers (Filion, 2009, p. 3). In addition, the rise of the minimum wage contributed to lesser poverty rates and increased household income (Filion, 2009, p. 4). The government should not interfere in the market from an economic perspective, nevertheless.


Filion, K. (2009, July 21). Minimum wage issue guide. Economic Policy Institute. Retrieved from

Boaz, D. (2009, July 24). Reporting the minimum wage. Cato at Liberty. Retrieved from