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

Long-run costs and economies of scale — practice question

The diagram shows a monopsony labour market in which the government has set a minimum wage. What difference is there between the wage the monopsonist wants to pay and the wage earned by labour?

AW1W3
BW1W2
CW2W3
DW2W4

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