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 supply of, and demand for, labour in an industry. At the outset, the labour market in this industry is in equilibrium. What effect will introducing a minimum wage OW have on the level of employment in the industry?

  • AIt will decrease by LM.
  • BIt will decrease by LN.
  • CIt will increase by LN.
  • DIt will increase by MN.

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