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

Long-run costs and economies of scale — practice question

The diagram illustrates labour supply and labour demand in the car manufacturing sector. A trade union successfully secures a wage rise from W1 to W2. What is the most likely effect on employment levels?

  • Afall from L1 to L2
  • Bfall from L3 to L2
  • Crise from L1 to L3
  • Drise from L2 to L3

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