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

Long-run costs and economies of scale — practice question

(a)[10]

Analyse whether an increase in the wage rate always causes an increase in the number of hours worked by an individual.

(b)[15]

A government said that pay rises in the next year ought to be kept as small as possible. Discuss whether the main determinants of wage rates are factors such as trade unions and the government rather than market forces.

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