Exhibit 27-10 ​

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.