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

Long-run costs and economies of scale — practice question

The diagram illustrates how the introduction of a national minimum wage, WM, affects an occupation in which employees are hired by a profit-maximising monopsonist. What happened to the total wages received by the workers in the occupation?

  • Adecrease from OW2VQ2 to OWMUQ3
  • Bdecrease from OW2ZQ1 to OWMUQ3
  • Cincrease from OW1XQ1 to OWMYQ1
  • Dincrease from OW1XQ1 to OWMUQ3

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