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

Long-run costs and economies of scale — practice question

What factor would strengthen a trade union, enabling it to raise wages without lowering the employment of its members in a particular industry?

  • AThe economy is experiencing a fall in the price of capital.
  • BThe economy is experiencing rising employment.
  • CThe price elasticity of demand for the industry’s goods is equal to 1.
  • DThe price elasticity of demand for the industry’s goods is greater than 1.

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