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

Long-run costs and economies of scale — practice question

(a)[12]

Do you agree with the view that, in a perfectly competitive labour market, wages are higher in some occupations than in others only because of differences in the supply of labour?

(b)[13]

A country sets a minimum wage rate by law. Discuss whether this can be included in the economic analysis of the theory of wages in an imperfectly competitive labour market.

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