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

Long-run costs and economies of scale — practice question

(a)[12]

Discuss the effectiveness of government policies which increase the net advantage of labour on the long-term supply of labour in an economy.

(b)[13]

Compare the impact of an increase in labour productivity on a firm in a monopsony labour market with an increase in labour productivity on a firm operating in a perfectly competitive labour market.

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