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

Long-run costs and economies of scale — practice question

(a)[12]

Using economic analysis, how can the level of wage rates in a perfectly competitive labour market be explained?

(b)[13]

Discuss, with the aid of a diagram, the possible effects on how an imperfectly competitive labour market operates if a government fixes a wage rate in this market.

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