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

Long-run costs and economies of scale — practice question

A government has concerns about employers gaining greater monopsony power during the wage bargaining process. Which policy mix is most likely to raise workers’ wages and employment prospects?

  • Atrade union powers strengthen; immigration controls relax; national minimum wage cut
  • Btrade union powers strengthen; immigration controls strengthen; national minimum wage raise
  • Ctrade union powers weaken; immigration controls relax; national minimum wage cut
  • Dtrade union powers weaken; immigration controls strengthen; national minimum wage raise

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