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 effect on the labour market of introducing a national minimum wage (MW). What do the distances XY and YZ show?

  • AYZ: existing workers made redundant; XY: increase in employed workers
  • BYZ: unemployed new entrants; XY: existing workers made redundant
  • CYZ: increase in employed workers; XY: existing workers made redundant
  • DYZ: existing workers made redundant; XY: unemployed new entrants

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI