When we say competitive, we are not saying they are competing, perfectly/imperfectively competitive is a term for a type of market, althought it is realted to competing firms.
No minimum wage, as little as possible government regulation.
I think government regulation is only necessary in the case of a monopoly.
When you walk into the Mc Donalds you are a wage taker. You take the market wage in a perfectly competitive enviroment. The market determines your wage, not employers.
You have to understand the basics of supply and demand. It is different in a monopsony though.
So under perfect competition, EVERYONE offers a the market wage. No one will offer a penny less, because they are price takers. No one will offer a penny more in wage, as they would be losing money for no reason. That is the model of perfect competition. Mc Donalds hires as many employees as they can afford (where MRP = MFC in economic terms), all at the market wage. Employees cannot pick and choose their wage. They all accept the market wage.
At a minimum wage, yes the wage grows but Mc Donalds will fire more employees. If you know economics you should know about consumer/producer surplus. After a minimum wage, there is Deadweight loss. Sorry for using so many terms, Deadweight loss basically results from nonefficiency.
So the real question is, does the benefit of having higher wages for hired employees outweigh the cost of the amount fired because of the minimum wage? The answer is no, illustrated by Deadweight loss
I have no idea what that thing under my avatar is. I've always liked stickers