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

Long-run costs and economies of scale — practice question

(a)[12]

Jobs with unpleasant working conditions, such as rubbish collection, tend to be paid less, whereas positions with pleasant conditions, such as senior managers, are paid more. How far does economic analysis explain this situation?

(b)[13]

Discuss what influence a trades union and a government can have in determining wage rates.

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