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 labour market for fruit pickers in country X. If the market began in equilibrium, how would wages and employment change if a minimum wage of W were introduced?

  • Awages: fall; employment: fall
  • Bwages: fall; employment: rise
  • Cwages: rise; employment: fall
  • Dwages: rise; employment: rise

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