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

Long-run costs and economies of scale — practice question

The graph illustrates the percentage increase in average earnings in the UK economy. What is the most likely reason for the pattern that appears in the graph?

  • Aa decrease in the supply of labour
  • Ba decrease in the interest rate
  • Can increase in productivity
  • Dan increase in the size of the labour force

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