Exhibit 26-7 ​            Market a                                Market B

Multiple Choice

Exhibit 26-7 ​

           Market A                                Market B
Refer to Exhibit 26-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the respective prices of $4 and $6 per unit. If this equilibrium persists in the long run, an economist would suspect that

A) nonpecuniary benefits are higher in market A.
B) nonpecuniary benefits are higher in market B.
C) there is discrimination in market A.
D) there is no cost of moving across markets.