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

Long-run costs and economies of scale — practice question

The government sets a wage ceiling for recording artists. What outcome must happen in the short run if the policy is effective?

  • Aa decrease in the demand for recording artists
  • Ba decrease in the economic rent earned by recording artists
  • Ca decrease in the profits of record companies
  • Da decrease in the supply of recording artists

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