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

Long-run costs and economies of scale — practice question

The diagram illustrates the labour supply curve for two distinct markets, X and Y. What accounts for the variation in the slopes of the labour supply curves?

  • AMarket X has a higher marginal revenue product per worker than Y.
  • BMarket X has a higher percentage of its labour belonging to a trade union than Y.
  • CMarket X has higher labour costs as a percentage of total costs than X.
  • DMarket X has more specific skills and training requirements than Y.

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