Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

In the UK in 2015, the average wage stood at £26 500 per year. At the same time, some footballers were receiving more than £150 000 each week. Which part of the theory of wage determination is most likely to account for this difference in wages?

  • Aaggressive wage bargaining by the professional footballers’ trade union
  • Bthe inclusion in wages of an element of economic rent
  • Cthe monopsony structure of the market for professional footballers
  • Dthe theory of net advantages

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