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

Long-run costs and economies of scale — practice question

The diagram illustrates the impact of introducing a national minimum wage, WM, in an occupation where workers are employed by a profit-maximising monopsonist. What change occurred in the total wages received by the workers in the occupation?

  • AThey decreased from OW2VQ2 to OWMUQ3.
  • BThey decreased from OW2ZQ1 to OWMUQ3.
  • CThey increased from OW1XQ1 to OWMYQ1.
  • DThey increased from OW1XQ1 to OWMUQ3.

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