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

Long-run costs and economies of scale — practice question

The diagram illustrates an individual worker’s labour supply curve. The hourly wage is W and the worker must complete a standard 40-hour week. Which area represents the net gain in the worker’s welfare if he could decide how many hours to work each week?

  • Ax
  • Bz – x
  • Cz + x
  • Dz

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