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Exhibit 27-10 ​ Refer to Exhibit 27-10. If the Firm in the Exhibit

Question 123

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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) W<sub>4</sub> - W<sub>2</sub>. B) W<sub>3</sub> - W<sub>2</sub>. C) W<sub>4</sub> - W<sub>1</sub>. D) W<sub>3</sub> - W<sub>1</sub>. E) There is no difference between the marginal factor cost and the wage rate a monopsony pays.
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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