Exhibit 27-3 ​ Refer to Exhibit 27-3. in the Absence of Collective Bargaining

question 38

Multiple Choice

Exhibit 27-3 ​

Refer to Exhibit 27-3. In the absence of collective bargaining, if the profit-maximizing monopsonist were to pay workers what their services were worth to it, it would pay

• A)W₁.
• B)W₂.
• C)W₃.
• D)some wage rate between W₂ and W₃.