Bakeries in a town reorganise how production tasks are allocated. Output per production worker rises from 120 to 160 loaves per shift, and the bakeries can sell the extra loaves. The number of people willing and able to work as bakery production workers at each wage rate is unchanged.
Explain one reason why the equilibrium wage of bakery production workers in the town may rise after the reorganisation.
149 exam-style questions on AQA GCSE Economics 1.5 Competitive and concentrated markets, covering 1.5.1a The range of market structures, 1.5.1b Distinguishing between market structures, 1.5.2a Characteristics of a competitive market, 1.5.2b How producers operate in competitive markets, 1.5.2c The economic impact of competition, 1.5.3a Characteristics of a non-competitive market, 1.5.3b How producers operate in non-competitive markets, 1.5.3c Monopoly and oligopoly, 1.5.4a The labour market and wage determination, and 1.5.4b Gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.