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

Long-run costs and economies of scale — practice question

(a)[12]

Recently, employers in some countries have hired foreign workers rather than local workers. Local workers argue that they should be given priority over foreign workers and also that more products should be produced at home instead of being imported. Explain, with the aid of a marginal revenue productivity diagram, why an employer might prefer to change to foreign workers.

(b)[13]

Recently, employers in some countries have hired foreign workers rather than local workers. Local workers argue that they should be given priority over foreign workers and also that more products should be produced at home instead of being imported. Discuss whether giving priority to local workers would be beneficial for a country.

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