Exhibit 27-10 ​

question 130

Multiple Choice

Exhibit 27-10
​

-Refer to Exhibit 27-10. If the firm in the exhibit is a monopsony, then the difference between its marginal factor cost and the wage rate it pays is equal to

• A)W₄ - W₂.
• B)W₃ - W₂.
• C)W₄ - W₁.
• D)W₃ - W₁.
• E)There is no difference between the marginal factor cost and the wage rate a monopsony pays.

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